Limited company closure upon leaving UK

[ft816]

Hi all. I am thinking to leave the UK permanently in a couple of years and would need to wind up my limited company. My query is if you wind up the company whilst overseas, then pay out retained earnings as capital, would the payment be tax free personally in the UK?
Also, the other main question is if you left the UK permanently and wound up the company later, would HMRC deem the company actually wound up when you left the UK anyway and thus you would need to pay capital gains tax personally on retained earnings paid out? Some posts have mentioned corporation exit tax or charge - I do not know much about this. Does any one have knowledge on this?

[Gonzo]

Possibly.

I think that if you withdraw the capital after you cease to be resident in the UK then there will be no liability for tax in the UK provided that you remain outside of the UK tax system for five tax years after your departure. If you return to the UK within that five years then you will have to pay the CGT.

You also need to be consider how your new home country will view your company if it is still running when you arrive there. Some are friendly, some are not. You want to be sure that you don't get a nasty surprise.

It might just end up being easier to wind up your company in the UK and pay the CGT, that's what I did. After applying entrepreneurs' relief and your annual exemption allowance (and your partner's annual exemption if applicable) the total might not be so bad (depending on the sums of course).

Also bear in mind that in two years time the rules will probably be completely different.

[PhilAtBFCA]

Clsoing company and leaving the UK

ft816

I think you have your points answered but if you want further detail there is an article here about closing the company and here about leaving the uk.

Phil