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Originally Posted by ASB
NewBoy,
I have no idea at all what Simons method will be (better than mine I imagine) but consider tihs:-
After 3 years you get taper relief of 75% on the value of shares sold. If there are two of you then given the approx 9k CGT allowance this means the company can have retained earnings of about 70k before any CGT becomes payable.
So if you rework your calculation retaining about 23k PA you might get a better result. But I can't be bothered to do it.
The problem with this might be that the IR could be unhappy about you setting up a CO and the winding it up every 3 years with ESC C16. [The concession that lets you take distributions as capital not income. I imagine they could not complain if you went through formal liquidation and that wouldn't be too expensive though]
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I certainly wouldn't rely on GB leaving taper relief or the concessionary treatment as is in the current climate. You could end up leaving money in the company on which you end up paying far more in tax in the future.
Take the money out as you earn it!