Closing Ltd Company - Bit of a Mess & Advice Needed

[rootsnall]

It's anti-avoidance legislation surrounding temporary non-residence (since FA 2013, I think). It aims to stop you taking, say, a year out and receiving a capital or dividend distribution in a low-tax jurisdiction overseas and then returning to the UK. For the purposes of the anti-avoidance legislation, anything more than 5 years is considered non-temporary (and the 5 years doesn't necessarily have an intuitive calculation, IIRC). I believe it applies to both capital gains and dividend income. But don't just take my word for it, obviously, ask a specialist.

They aren't thick. I know somebody who went to live in tax free country for 12 months ( pre 2013 ) to save a lot of tax.

[Quindi]

Gents - thank you very much for all of your advice and suggestions: it's a big help. If any of you have recommended or trusted MVL experts please drop me a link or DM.

I am in Dubai at the moment so it is tax free but you can never really be sure for long term plans (regarding James and the 5Y point) - however, i dont have intentions to move back to the UK even if this was to come to an end. Is the criteria simply a non-resident of the UK and not the country you are in? i.e. if i move from a zero tax country to a country with tax in Europe for example.

Again massive help guys - really appreciate it as it was starting to become a bigger worry for me.

[jamesbrown]

They aren't thick. I know somebody who went to live in tax free country for 12 months ( pre 2013 ) to save a lot of tax.

Right, it was a blindingly obvious loophole, so it was closed. Now, you have to be moving overseas and mean it, and even if you mean it, you could get caught out.

[rootsnall]

Right, it was a blindingly obvious loophole, so it was closed. Now, you have to be moving overseas and mean it, and even if you mean it, you could get caught out.

Woe betide anyone who gets involved in dual tax palavas. Yonks ago I was working as a permie and got some paid for advice from PWC. They produced a few pages of expert opinion that I pointed out was wrong after 10 mins of reading up on it. In the end I had to use the fingers in ears and hum approach and hope nothing came of it.

[Quindi]

First, I would look to see how you’d be taxed on dividends in your new country of residence. If they are tax free, that is probably the route to go, providing you plan to be non-UK resident for at least five full tax years (otherwise you may be taxable on the full amount in the year you return). Failing that, I see no reason why you couldn’t take a capital distribution and then claim ER on your personal tax return, but you should speak to a specialist. Sounds like your current accountant is pretty clueless (e.g. is unaware of MVL) or has described the process for striking off, rather than MVL (now a 25k limit for striking off, as this is no longer covered by an ESC).

Thanks James - and everyone else who has provided advice it really helps. If you know of any recommended or trusted MVL specialists then a link or DM would be much appreciated.

I am in Dubai so it is tax free and about the 5Y thing - you can never be truly confident in your future in Dubai but i dont have any intentions of moving back to the UK even if i had to leave here. Is it simply i am outside of the UK? e.g. if i move from a zero tax country to a taxed country in Europe.

Thanks

[jamesbrown]

Woe betide anyone who gets involved in dual tax palavas. Yonks ago I was working as a permie and got some paid for advice from PWC. They produced a few pages of expert opinion that I pointed out was wrong after 10 mins of reading up on it. In the end I had to use the fingers in ears and hum approach and hope nothing came of it.