Selling Ltd and Enterpreneurs' Relief

[georgeg]

Hi all,

So, I was made an offer by someone that would like to buy my company.

I am in full controll of the company and the assets are in the form of cash in the bank.

Would I be able to claim Enterpreneurs' Relief on the proceeds from the sale?

Regards,
G.

[nucastle]

Would the purchaser co-incidentally also be the provider of an LLP tax avoidance 'scheme' that has turned out not to work in practice?

[georgeg]

Hi nucastle,

No scheme or anything.

They just want my ltd. A straight forward transaction.

They are willing to pay in cash. No loans or any other questionable tacticts.

Regards,
G.

[nucastle]

Wrong sub forum then. Maybe ask to get it moved.

There are a number of dodgy avoidance schemes using what they say is a 'legit' acquisition of your Ltd as an acceptable tax avoidance measure. Run a mile, and keep running.

[WTFH]

Moved.

[Lance]

this may sound like a stupid question, but why would anyone buy a company just for the cash in the bank?

Unless you're selling it cheap. But why would you do that?

This makes no sense. There is information missing.

[Maslins]

this may sound like a stupid question, but why would anyone buy a company just for the cash in the bank?

Unless you're selling it cheap. But why would you do that?

This makes no sense. There is information missing.

Assuming it's a typical contracting company, then this ^^.

[georgeg]

Hi Lance,

One reason is access to a PSL or two.

From my point of view, this is an opportunity to have a break and refocus. Enterpreneurs' relief would be a nice addon.

gov.uk suggests it would be [disposal of share in or securities (or interests in shares or securities) of a company]. However, this has come in a short.notice so I am after a couple of shortcuts to do a bit more reading.

Regards,
G.

[WTFH]

this may sound like a stupid question, but why would anyone buy a company just for the cash in the bank?

Unless you're selling it cheap. But why would you do that?

This makes no sense. There is information missing.

Just wondering if the scheme was...
Let's say there was 100k in the company. Normally you'd pay 19k in CT, which takes the value to 81k.
If he sells the company for 95k and gets ER, then he's only paying 9.5k in tax, so ends up with 85.5k in his back pocket.

...or something like that, maybe?

[northernladuk]

What happens next? Would you plan on opening a new company and carrying on or have you done with contracting?