Originally posted by zerosum
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Moving away from the UK, withdrawing dividends and closing company
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This is a very interesting thread but if you have done MVL and paid the 10% tax isnt that the end of it? If you stay in UK or move abroad isnt that the same and makes no difference at all?
I dont understand why you complicate MVL and CGTComment
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Originally posted by NowPermOutsideUK View PostThis is a very interesting thread but if you have done MVL and paid the 10% tax isnt that the end of it? If you stay in UK or move abroad isnt that the same and makes no difference at all?
I dont understand why you complicate MVL and CGTComment
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Great thread. If I understood correctly, the best strategy (assuming destination country has zero dividend, capital gains and foreign income tax) seems to be:
- Draw x director salary (Depend on the income tax allowance in the destination country. Not sure how to report this on the UK payroll)
- Draw (50,000 - x) dividends
- Distribute remaining capital under MVL
- Claim ER if returning to UK within 5 years.
The route where one distributes dividends to a foreign company seems like an alternative, although not sure how one would go about doing this. Does anyone look a bit further into this? I asked a friend (who's an accountant), and she just rolled her eyes at me.Comment
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I do like zerosums attention to detail and creativity
I can tell you what I am thinking as I am in a similar position
1) Have a large warchest in UK which remains in company as retained profit
2) Warchest held in property so not easily liquidated
I have residency in Switzerland with a full time salaried job so definitely am non uk resident and have been this way for a few years. This means that CGT in Switzerland is tax free but dividends is taxable as income.
The plan is to sell UkLtdA to UKLtdB (both being owned by me) to cystralise the CG and avoid paying tax.
If I sell UkLtdA then this is a CG and I can take out the entire value of the company. UkLtdB will then be funded by a directors loan from me to purchase UkLtdA.
Paying yourself PAYE and dividends at basic rate wont work for me as I have a bit of rental income from privately help personal property.
*Footnote: The level of detail that so called wealth advisers or tax advisers have is frankly shocking and a lot of this has been identified from my own research. UK accountants seem to now only want to fill in forms rather then provide proper tax planning advice with different scenarios. There is a real niche for tax planning which seems to be missing in the marketComment
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Originally posted by NowPermOutsideUK View PostI do like zerosums attention to detail and creativity
I can tell you what I am thinking as I am in a similar position
1) Have a large warchest in UK which remains in company as retained profit
2) Warchest held in property so not easily liquidated
I have residency in Switzerland with a full time salaried job so definitely am non uk resident and have been this way for a few years. This means that CGT in Switzerland is tax free but dividends is taxable as income.
The plan is to sell UkLtdA to UKLtdB (both being owned by me) to cystralise the CG and avoid paying tax.
If I sell UkLtdA then this is a CG and I can take out the entire value of the company. UkLtdB will then be funded by a directors loan from me to purchase UkLtdA.
Paying yourself PAYE and dividends at basic rate wont work for me as I have a bit of rental income from privately help personal property.
*Footnote: The level of detail that so called wealth advisers or tax advisers have is frankly shocking and a lot of this has been identified from my own research. UK accountants seem to now only want to fill in forms rather then provide proper tax planning advice with different scenarios. There is a real niche for tax planning which seems to be missing in the marketPublic Service Posting by the BBC - Bloggs Bulls**t Corp.
Officially CUK certified - Thick as f**k.Comment
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Originally posted by Fred Bloggs View PostOK, I am not an accountant. What is the commercial purpose of those transactions?merely at clientco for the entertainmentComment
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Originally posted by NowPermOutsideUK View Post2) Warchest held in propertyComment
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Originally posted by eek View PostThere isn't one.Public Service Posting by the BBC - Bloggs Bulls**t Corp.
Officially CUK certified - Thick as f**k.Comment
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Originally posted by Fred Bloggs View PostOK, I am not an accountant. What is the commercial purpose of those transactions?
The reason for doing this is obviously to sell shares held in my personal name to the new company and cyrstailse the gain.
Another answer could be to hold my shares in a ltd structure for limited liability protection.
These shares are not being sold at an undervalue but are being sold to a connected party. Does there really need to be a commercial purpose?Comment
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