LTD Closure - most tax efficient way? LTD Closure - most tax efficient way? - Page 2
Page 2 of 2 FirstFirst 12
Posts 11 to 15 of 15
  1. #11

    Godlike

    ChimpMaster's Avatar
    Join Date
    Jan 2006
    Location
    Here There and Everywhere
    Posts
    5,626

    Default

    Need an accountant to verify, but I would think you'd pay 20% CGT rather than dividend tax, if you liquidated. You just can't claim ER, as far as I see it.

    Why do you need the funds? If you're looking to invest then could you change the SIC and re-purpose the company for the investment (for example property development/BTL)? That way you wouldn't need to extract the funds and pay tax, only to then invest the remainder.

  2. #12

    Contractor Among Contractors


    Join Date
    Sep 2009
    Location
    Tunbridge Wells
    Posts
    1,677

    Default

    Late to the party...

    To advise I'd want to know a bit more about the situation with regards to the two companies. Yes they're both in IT, but do they both have the same ownership? If so, begs the question why do you have two in the first place?!

    If there's a good reason for you having two companies, then potentially MVLing one would be a viable strategy. If the only reason for having two is you had lots of assets in one, want to extract that, so started up a new Co while you think about it, then MVLing probably isn't a viable option.

    If you do fall foul of the transactions in securities rules and liquidated, then my understanding is the distributions would be dividends, so ER is irrelevant. Therefore they would be subject to your marginal rate of dividend tax (probably 38.1% on the bulk of it), not 20% CGT.

    Re the two "schemes" you mentioned:

    - nothing particularly contentious about EIS...but this is a tax relief for people investing money. So in itself it wouldn't help you get the money out of the old company, just may be a way that you could spend a hefty chunk of that money in a certain way that then negated some of the tax sting.

    - UAT - never heard of it. May be valid, may be dodgy, I don't know.

  3. #13

    Faqqed Off

    TheFaQQer's Avatar
    Join Date
    Oct 2006
    Posts
    36,488

    Default

    Quote Originally Posted by Maslins View Post
    UAT - never heard of it.
    Nor has my client
    Best Forum Advisor 2014
    Work in the public sector? You can read my FAQ here
    Click here to get 15% off your first year's IPSE membership

  4. #14

    Faqqed Off

    TheFaQQer's Avatar
    Join Date
    Oct 2006
    Posts
    36,488

    Default

    Quote Originally Posted by whatwhatwhat View Post
    So, if I want no stress/worries re. HMRC, am I do be paying 45% on the £450k? Ouch!
    Why do you want / need the money? If you don't actually need the lump sum then you may be best to not take money from the new company for a while and gradually pay out the £450k as dividends over the next several years. Build up your £1 million in the new company and then worry about how to get that out then...
    Best Forum Advisor 2014
    Work in the public sector? You can read my FAQ here
    Click here to get 15% off your first year's IPSE membership

  5. #15

    Still gathering requirements...


    Join Date
    Nov 2013
    Posts
    53

    Default

    Have you read http://forums.contractoruk.com/accou...ast-while.html - might be an option?

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •