 |
|
| CURRENT SECTION :: News |
The No. 1 Resource for UK IT Contractors: Comprehensive guides - Daily news IT contract jobs - Market rates - Forums - IT contractor network - Calculators |
|
 |
Contractor’s Question: I am in the process of closing my company which I have had for four years and I have about £60k built up that I would like to take out in a mixture of Capital Gain and dividend. What are the CGT thresholds and how do I show this in my return? Expert’s Answer: I assume that the closing down of the company is being done [under] section 652A of the Companies Act and the payment of the balance of the profit & loss account to the shareholders is being done under extra statutory concession C16. The annual exemption limit for each shareholder receiving such payment on closure of the company assuming there are no other capital gains during the tax year for 2008/09 is £9,600. The remainder of the capital gain would be taxable using the newly introduced Entrepreneur’s Relief @ 10%. Distributions of amounts lying to the credit of the Profit & Loss account at the closure of the company by way of dividends and capital gains can be a complex computation (Particularly if there are more than one shareholder and dividend payments straddle over two tax years). You should ask your Accountant/Tax Advisor to do exact computations to advise the best possible dividend/capital gains distributions to suit your individual circumstances. Answer provided by Rakesh Wadhwa of Tax-Link, Chartered Tax Advisors & Accountants Oct 22, 2008 Email this article Printer friendly page Previous Page
|
|
|
||||||||||||||||||||||||||||
| All content © Contractor UK Limited | [Register for News Letter] | [Privacy Statement] | [Terms of Use] | [Top of Page] |