Hi Folks,
I've got an amount sat in the limited company bank account which is retained profit\reserves.
I read these forums all the time and have seen discussions stating that one way (the best way?) for me to take that money is to close the limited company and take the money - it would be subject to capital gains tax, but this should be at a lower rate than taking it as salary or a dividend.
I've also read on here that having UK Non-resident status means you wouldn't have to pay the capital gains.
I've just finished a contract in the UK and I now have a chance to work overseas for 12 months. Given that IT contracting in the UK is on its arse, I'm seriously considering it. At the same time it looks like a perfect opportunity to take money from my UK limited company tax free. It sounds too good to be true, so I'm guessing that there is a catch.
Most people on here say ask your accountant, that's what you pay them for. Well, I did, and she doesn't know!
I went to the HMRC web site and found this useless statement:
When you are not resident in the UK you might not have to pay UK tax on some of your income and gains.
If your normal home is outside the UK and you are in the UK for fewer than 183 days in the tax year you may be non-resident. But you might still be resident even if you spend fewer than 183 days in a tax year in the UK.
I'm sure you'll agree that this is useless. Terms like might\should\may\normal are surely not appropriate on a HMRC site.
Can anyone who has any expertise in this area translate this into something definitive?
Thanks.
I've got an amount sat in the limited company bank account which is retained profit\reserves.
I read these forums all the time and have seen discussions stating that one way (the best way?) for me to take that money is to close the limited company and take the money - it would be subject to capital gains tax, but this should be at a lower rate than taking it as salary or a dividend.
I've also read on here that having UK Non-resident status means you wouldn't have to pay the capital gains.
I've just finished a contract in the UK and I now have a chance to work overseas for 12 months. Given that IT contracting in the UK is on its arse, I'm seriously considering it. At the same time it looks like a perfect opportunity to take money from my UK limited company tax free. It sounds too good to be true, so I'm guessing that there is a catch.
Most people on here say ask your accountant, that's what you pay them for. Well, I did, and she doesn't know!
I went to the HMRC web site and found this useless statement:
When you are not resident in the UK you might not have to pay UK tax on some of your income and gains.
If your normal home is outside the UK and you are in the UK for fewer than 183 days in the tax year you may be non-resident. But you might still be resident even if you spend fewer than 183 days in a tax year in the UK.
I'm sure you'll agree that this is useless. Terms like might\should\may\normal are surely not appropriate on a HMRC site.
Can anyone who has any expertise in this area translate this into something definitive?
Thanks.
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