Connected companies loan

[Maslins]

However, in my case I am looking to quit contracting within the next few years (sooner the better, it just isn't worth the hassle any more) so I want to liquidate the IT Co, claim ER and sail off into the sunset while my other investments/businesses tick along on the side.

Isn't the main reason why people want to do what the bulk of this thread is about, is they want to avoid having to pay 32.5% or thereabouts in personal tax on big dividends to invest personally? Appreciate there might be some other reasons too, but thought this was the main one. Hence in your situation, if you're anticipating an MVL soon (so likely getting funds into your hands personally at just 10% tax), then does it not make sense to delay any big investments until post MVL, and buy personally?

[ChimpMaster]

Isn't the main reason why people want to do what the bulk of this thread is about, is they want to avoid having to pay 32.5% or thereabouts in personal tax on big dividends to invest personally? Appreciate there might be some other reasons too, but thought this was the main one. Hence in your situation, if you're anticipating an MVL soon (so likely getting funds into your hands personally at just 10% tax), then does it not make sense to delay any big investments until post MVL, and buy personally?

If you need the funds personally, to make investments in your own name or even just to spend personally, then of course you are correct in that it is better to quit the IT business, MVL and then proceed. But if you don't need the funds personally, and instead want to invest in another area or another business and to grow it over time with retained profits, then a corporate structure is best.

HMRC have really messed up the investment landscape, and well, the entire tax landscape. It's so much more complicated now trying to work out the best way to do things.