Company Wind Up

[drob1984]

I spoke to a NZ tax accountant and he informed me that NZ had a 4 year tax exemption for returning citizens on overseas income (implemented to entice skilled workers back to NZ)

Temporary tax exemption

So I'm thinking once I'm back in NZ and qualified as a NZ tax resident, I can just transfer the bulk of my companies cash to my NZ account and then just wind up my company using an straight forward MVL (with cash under £25000)

Can you be a bit more specific on this, as returning to NZ is an option I have as well.
Say in your case.. you have £90K in your company account.

I assume you'll have to pay any corp tax UK for the current company year that your company would owe?
What about Entrepreneurs Relief. Would that still apply or are you saying you can withdraw all of your company funds (after the corp tax bit) and you wont pay any tax on that if you transfer it to NZ?

Thanks in advance.

[Rictastic]

This is just from a personal tax perspective, so the company still has to pay Corp/VAT etc

I think the Entrepreneurs Relief is from a UK personal tax perspective also, so I'd guess if you wound a company up once in NZ and a NZ tax resident this would be oversea income and therefore perhaps could fall under the exemption, although I'm not sure as not all income types are included according to the link, whereas dividends definitely are so I don't see a reason why this isn't possible (providing the criteria for the exemption are meet) to withdraw the cash as dividends once you're a NZ tax resident and then use the exemption on you NZ tax return

Although it would be interesting to hear from someone who has actually moved back to NZ or is familiar with UK personal tax

[drob1984]

This is just from a personal tax perspective, so the company still has to pay Corp/VAT etc

I think the Entrepreneurs Relief is from a UK personal tax perspective also, so I'd guess if you wound a company up once in NZ and a NZ tax resident this would be oversea income and therefore perhaps could fall under the exemption, although I'm not sure as not all income types are included according to the link, whereas dividends definitely are so I don't see a reason why this isn't possible (providing the criteria for the exemption are meet) to withdraw the cash as dividends once you're a NZ tax resident and then use the exemption on you NZ tax return

Although it would be interesting to hear from someone who has actually moved back to NZ or is familiar with UK personal tax

Thanks for further clarification. So effectively... pay the corp tax. Then everything else just withdraw as a dividend once a NZ tax resident and any taxation would be exempt. So if after tax, left with £80K - can just pay myself that in dividends. Close the company as close to the company tax year-end as possible. That's how I interpret the above.

Only issue I have is that I was a NZ tax resident in 2014, so I may have to wait a few years before I can do this (I have not claimed transitional residency before).