I am currently a joint director of a 10 year old Ltd company and am planning on leaving to set up my own Ltd. I have about £100k in the reserves and want to know the best way of getting the money out in the most tax efficient way.
I know I can't transfer the money to NewCo and have just dumped £30k into my SIPP as an employer contribution. I don't want to take all of the rest out as dividend as that will lead to a large tax liability. I would like to leave the company within the next 2-3 months and wondered if there is another way? Someone mentioned a possible share buy-back then I could take the lump sum and be liable to 10% CGT. This sounds like the best option if it is possible.
Is this correct and if so, how would it work?
Many thanks
I know I can't transfer the money to NewCo and have just dumped £30k into my SIPP as an employer contribution. I don't want to take all of the rest out as dividend as that will lead to a large tax liability. I would like to leave the company within the next 2-3 months and wondered if there is another way? Someone mentioned a possible share buy-back then I could take the lump sum and be liable to 10% CGT. This sounds like the best option if it is possible.
Is this correct and if so, how would it work?
Many thanks
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