I think a good discussion with your account in order. We keep answering your questions but you aren't learning anything if thst makes sense.
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CGT at LTD strike off
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These seem like perfectly reasonable questions to me. I'm not sure why everyone should always ask their accountant first - much quicker and easier to get simple answers to simple questions elsewhere. Naturally just use anything anyone says here as initial guidance for exploring ideas rather than treating it as gospel.
To answer the OP:
- Yes, you can get capital treatment on a strike-off, as long as the total distributed amount is no more than £25k.
- If it's more than £25k, you'll need an MVL to get capital treatment.
- If it's marginally over £25k, the whole lot gets treated as income - there's no split between part-income and part-capital.
- Just take the excess as a dividend and get the amount down below the limit.
- Strike-off potentially has other benefits - it's a lot cheaper than an MVL, and the anti-phoenixing TAAR doesn't apply.
- There are some risks to a DIY strike-off, though - make sure you distribute at the right point in the process (Google "bona vacantia"...)Comment
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Originally posted by Amanensia View PostThese seem like perfectly reasonable questions to me. I'm not sure why everyone should always ask their accountant first - much quicker and easier to get simple answers to simple questions elsewhere. Naturally just use anything anyone says here as initial guidance for exploring ideas rather than treating it as gospel.
To answer the OP:
- Yes, you can get capital treatment on a strike-off, as long as the total distributed amount is no more than £25k.
- If it's more than £25k, you'll need an MVL to get capital treatment.
- If it's marginally over £25k, the whole lot gets treated as income - there's no split between part-income and part-capital.
- Just take the excess as a dividend and get the amount down below the limit.
- Strike-off potentially has other benefits - it's a lot cheaper than an MVL, and the anti-phoenixing TAAR doesn't apply.
- There are some risks to a DIY strike-off, though - make sure you distribute at the right point in the process (Google "bona vacantia"...)
It's a lot of money he's talking about here so surely a more belt and braces approach is needed'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by northernladuk View PostKind of but the OP is missing some fundamental points and situation is slowly moving forward rather than him having a good discussion about all the options and variables. He's asking questions but still no closer to the solution. I think, in this particular case, he needs a much rounder approach to his problem rather than firing off questions base on answers based on questions.
It's a lot of money he's talking about here so surely a more belt and braces approach is needed
Oi admin!
@Anamnesia: thanks, got it.Comment
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Originally posted by abz2020 View PostYou are entitled to your opinion, but is it useless and dont bring any value into the thread. Ergo it is just trolling.
Oi admin!
@Anamnesia: thanks, got it.
Based on your history of posts on here, NLUK is not the one who is trolling.…Maybe we ain’t that young anymoreComment
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Originally posted by abz2020 View PostYou are entitled to your opinion, but is it useless and dont bring any value into the thread. Ergo it is just trolling.
Oi admin!
@Anamnesia: thanks, got it.
You keep flailing around. I'm sure you'll get somewhere near a solution in the next couple of pages.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by abz2020 View PostI couldnt find CGT @ 20%, where is that defined?
Capital Gains Tax: Capital Gains Tax rates - GOV.UKSee You Next TuesdayComment
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Originally posted by abz2020 View PostHi all,
Question,
if you have say £34 000 in your LTD and want to strike it off (solvent) is this the calculation. 2 owners 50/50 shares, basic rate tax payers:
£24000 allowed free of CGT (2x12000)
£10000*10%= £1000 CGT (2x5000)
Accountant corona-ed.Comment
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