hi all,
I am newbie on the forum, looking for some advice and maybe this has already been asked:
I have been contracting for a while now and looking to go permanent due to personal reasons, mainly being closer to home.
Can I close down my company and claim ER relief ? my accountant is not too sure of going down that route as there are significant funds close to £170k and he said that it can be argued as to whether ER is applicable in this case. He also suggested that if I do close down then the money can be distributed as capital distribution and will be taxed at 20%. I am a bit confused as I assumed that It would be taxed at the dividend tax rate of 37.5% if i do not claim ER relief.
Many Thanks
I am newbie on the forum, looking for some advice and maybe this has already been asked:
I have been contracting for a while now and looking to go permanent due to personal reasons, mainly being closer to home.
Can I close down my company and claim ER relief ? my accountant is not too sure of going down that route as there are significant funds close to £170k and he said that it can be argued as to whether ER is applicable in this case. He also suggested that if I do close down then the money can be distributed as capital distribution and will be taxed at 20%. I am a bit confused as I assumed that It would be taxed at the dividend tax rate of 37.5% if i do not claim ER relief.
Many Thanks
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