After working for the best part of ten years through a Ltd I managed to accumulate quite a warchest in my Ltd. I dont feel it is necessary to disclose numbers but I think this question can be answered if the amount was a few hundred K to 900K.
I have asked my accountant but he normally is just used for calculations rather than specific tax planning and I d like to get a second opinion from some of you guys.
I can see a lot of very valuable info on MVL here but my problem is I did not do MVL when I could so I think thats out of the question. If I am wrong and I can do MVL please do say ...
I stopped contracting in 2016 and moved abroad. I had a stuffed warchest and bought a property in company name - It was all the rage at the time and sometimes I wish I had not done that. It would have been better to MVL and walk away with the cash or create a new SPV with that clear cash.
I m quite sure that I wont do contracting in the UK again so the rent gets paid in the UK and I leave everything ticking over. Its a 3% return which is not great but its something. Anyway...
My questions:
I am now quite nervous that I have a company with £100 share capital which is now worth in excess of a few hundred k and stuck with an illiquid asset and I am thinking of how I can pass this on and what the tax implications would be. I dont have kids and not married so the spouse gift does not work
If most of the money was created by contracting in IT by a one man band and then the SIC code changed a few years to property development and then a property acquired and rented out if I was to sell the properties could I in theory do MVL and qualify for ER at 10% tax? Maslins were not sure although Chris was very helpful so thumbs up to him.
Is it possible for me to gift my shares to someone I trust? I dont want to do anything illegal just tax planning and I know if I was still in the UK this will attract capital gains tax as if I had sold it at full market price. However as I have moved outside the UK and am in a country where no capital gains is payable is this in theory possible after I have been here for five years and therefore out of reach of HMRC for capital gains?
Any pointers would be helpful and appreciated- In hindsight I should have MVL'd but I didn't so thats life and the sums involved are really quite large after a decade of selling my soul to the devil so this could be a life changing decision and preparation step for me
Thank you all in advance for any help
I have asked my accountant but he normally is just used for calculations rather than specific tax planning and I d like to get a second opinion from some of you guys.
I can see a lot of very valuable info on MVL here but my problem is I did not do MVL when I could so I think thats out of the question. If I am wrong and I can do MVL please do say ...
I stopped contracting in 2016 and moved abroad. I had a stuffed warchest and bought a property in company name - It was all the rage at the time and sometimes I wish I had not done that. It would have been better to MVL and walk away with the cash or create a new SPV with that clear cash.
I m quite sure that I wont do contracting in the UK again so the rent gets paid in the UK and I leave everything ticking over. Its a 3% return which is not great but its something. Anyway...
My questions:
I am now quite nervous that I have a company with £100 share capital which is now worth in excess of a few hundred k and stuck with an illiquid asset and I am thinking of how I can pass this on and what the tax implications would be. I dont have kids and not married so the spouse gift does not work
If most of the money was created by contracting in IT by a one man band and then the SIC code changed a few years to property development and then a property acquired and rented out if I was to sell the properties could I in theory do MVL and qualify for ER at 10% tax? Maslins were not sure although Chris was very helpful so thumbs up to him.
Is it possible for me to gift my shares to someone I trust? I dont want to do anything illegal just tax planning and I know if I was still in the UK this will attract capital gains tax as if I had sold it at full market price. However as I have moved outside the UK and am in a country where no capital gains is payable is this in theory possible after I have been here for five years and therefore out of reach of HMRC for capital gains?
Any pointers would be helpful and appreciated- In hindsight I should have MVL'd but I didn't so thats life and the sums involved are really quite large after a decade of selling my soul to the devil so this could be a life changing decision and preparation step for me
Thank you all in advance for any help
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