UK Paying dividend to offshore shareholder

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Hi,

I have a UK Limited company, a family member lives "offshore" lets say for arguments sake the Cayman Islands.

If I made the family member a 95% shareholder of the company and the remaining 5% with me. Then I pay a dividend of say £100: £95 would go to the Caymans (tax free) to the family member and I would receive £5.

Is this strictly speaking legal? and more importantly... would this raise suspicion with HMRC? and if so is there anything HMRC can do?

Many thanks
 

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