Can I liquidate my company with an MVL without repaying the director's loan?

[ContrataxLtd]

Thanks for clarifying, ContrataxLtd.

I should also add that I will also benefit from not having to pay the 10% CGT as I am non-resident and intend to be for at least the next five complete UK tax years. However, I'm still awaiting clarification on this from my accountant as, reading here, I'm not sure now if that only applies if I have been non-resident from the beginning of the current tax year when the capital distribution is done, as I have only been non-resident since July.

Hi Neo

Definitely something for your accountant to clarify on that is. Non residency is quite a complex area and normally depends on whether split year treatment is available, RDR3 is your guide to determining your residency status if you want a light read!

Martin
Contratax Ltd

[Neo]

Thanks again for that, ContrataxLtd.

I've just read RDR3 and I am classed as UK resident for the current tax year under the second automatic UK test because I had a home in the UK for at least 30 days during the tax year (the third automatic overseas test doesn't apply because I worked for more than 30 days in the UK during the tax year).

However, split-year does apply to me under Case 1 with the relevant period beginning 22 June as that is when I started my job in Mauritius.

From what I understand then, I will not be liable to pay CGT when I receive the capital distribution from my company.

[ContrataxLtd]

Thanks again for that, ContrataxLtd.

I've just read RDR3 and I am classed as UK resident for the current tax year under the second automatic UK test because I had a home in the UK for at least 30 days during the tax year (the third automatic overseas test doesn't apply because I worked for more than 30 days in the UK during the tax year).

However, split-year does apply to me under Case 1 with the relevant period beginning 22 June as that is when I started my job in Mauritius.

From what I understand then, I will not be liable to pay CGT when I receive the capital distribution from my company.

Sounds about right Neo, make sure you do clarify it all with your accountant though. You don't want to get into a situation where you pay tax that you weren't expecting, especially if you come back to the UK just a little too early so that the gain crystallises on your return to the UK!

Martin
Contratax Ltd