Selling Ltd and Enterpreneurs' Relief

[webberg]

Pardon my ignorance.

What is a PSL?

Generally I would agree that on the face of it, a genuine third party buying cash in a company wrapper makes little sense.

You'd be better liquidating and taking a capital distribution and claiming ER that way.

Be aware that ER has a number of anti avoidance provisions including a couple of nasty ones introduced in 2016 which basically set out to deny relief if the reason for a sale includes tax. Hard to deny that seeking ER is considering the tax position. So HMRC's default position is that some tax mischief is planned and they will investigate. So be prepared.

Go and get some professional advice and not a bunch of ill informed opinions from anonymous forum posters.

[TheCyclingProgrammer]

The anti avoidance provisions mentioned above have nothing to do with ER directly, but in fact apply to capital treatment of a final distribution full stop (even if you haven’t claimed ER).

[georgeg]

Hi northernladuk,

I would take a little break to start with. Then I will focus on the development of a product. Still in IT, in a different industry.

Would that have any bearing?

Regards,
G.

[Lance]

One reason is access to a PSL or two.

Access to a PSL has value.
It's in effect a contract and has some value called goodwill.

Figure a price for that, and add it to the cash assets before you agree a price.

[Lance]

What is a PSL?

>>>>>>SNIP<<<<<<<

Go and get some professional advice and not a bunch of ill informed opinions from anonymous forum posters.

Quite a lot of our opinions can be very good advice (quite often saying to seek professional advice).
Some can be awful as well.

So take your broad, sweeping-statement brush back to the tax evaders forum where people really need help.


PS. PSL = preferred suppliers list

[webberg]

The anti avoidance provisions mentioned above have nothing to do with ER directly, but in fact apply to capital treatment of a final distribution full stop (even if you haven’t claimed ER).

Agreed but I assumed that if the OP was closing for a period and winding down, then liquidating and claiming ER is sensible.

My original thought about getting advice stands.

[georgeg]

Hi Lance,

Sure thing. That would be the cherry on top.
I would not sell for less than what's in the bank... why would I do so anyway? Heh.

Cheers,
G.

[georgeg]

Hi webberg,

The ltd will remain operational. The difference is that I won't be part of it, other than perhaps a handover period (of no more that a couple of months)

Regards,
G.

[webberg]

Quite a lot of our opinions can be very good advice (quite often saying to seek professional advice).
Some can be awful as well.

So take your broad, sweeping-statement brush back to the tax evaders forum where people really need help.


PS. PSL = preferred suppliers list

Thanks for the information on PSL.

"tax evaders forum"? I would put that in the "broad, sweeping statement" category i think.

I would say that, in my opinion, almost NOBODY who used the forum where this thread now sits, is a tax "evader".

HMRC wish to paint a picture for the gullible that this is the case, but I'm afraid that it's just not true.

[webberg]

Hi webberg,

The ltd will remain operational. The difference is that I won't be part of it, other than perhaps a handover period (of no more that a couple of months)

Regards,
G.

I will say again - go and get some professional advice.

The situation will vary according to each individual circumstance so it would pay you to shop around for an opinion and a fee.