Hi All,
I am currently facing two situations and I was wondering if I could possibly combine both of them together to achieve what I am looking for.
Situation 1:
I have own a Limited Company from my time as a Accountancy contractor but it has been sitting inactive from Dec 2019 since I got a new role as a PAYE contractor. I do have £56K worth of retained earning where I am thinking of going through a MVL as the most cost-effective way to extract this.
Situation 2:
I am in the fortunate situation where I own my own flat and I am in the process of buying a new house. I plan to keep the flat and as I live in Scotland I am liable to Additional Dwelling Tax ("ADS"). Even with the very recent change to the LBTT tax rules + ADS, my tax charge could be at least £13k.
Combine:
Is it possible to firstly change the services of my limited company from accountancy to property. Use the retained earnings from my property limited company (it won't be all of £56k as I need to keep some back for 19/20 corporation tax) to purchase my current flat. And thus being able to extract my retained earning without paying tax. (will of course incur solicitor fees)
As the flat is no longer in my name but the name of my property limited company I will avoid paying ADS. In the long run I do plan to rent out my flat and I believe there are potential tax savings if it was rented out as a property limited company.
Has anybody encountered a situation like this or is anybody able to provide any advice please?
Alternatively can someone recommend a financial adviser/planner preferably based in Scotland that I could talk this through with?
Many thanks in advance
I am currently facing two situations and I was wondering if I could possibly combine both of them together to achieve what I am looking for.
Situation 1:
I have own a Limited Company from my time as a Accountancy contractor but it has been sitting inactive from Dec 2019 since I got a new role as a PAYE contractor. I do have £56K worth of retained earning where I am thinking of going through a MVL as the most cost-effective way to extract this.
Situation 2:
I am in the fortunate situation where I own my own flat and I am in the process of buying a new house. I plan to keep the flat and as I live in Scotland I am liable to Additional Dwelling Tax ("ADS"). Even with the very recent change to the LBTT tax rules + ADS, my tax charge could be at least £13k.
Combine:
Is it possible to firstly change the services of my limited company from accountancy to property. Use the retained earnings from my property limited company (it won't be all of £56k as I need to keep some back for 19/20 corporation tax) to purchase my current flat. And thus being able to extract my retained earning without paying tax. (will of course incur solicitor fees)
As the flat is no longer in my name but the name of my property limited company I will avoid paying ADS. In the long run I do plan to rent out my flat and I believe there are potential tax savings if it was rented out as a property limited company.
Has anybody encountered a situation like this or is anybody able to provide any advice please?
Alternatively can someone recommend a financial adviser/planner preferably based in Scotland that I could talk this through with?
Many thanks in advance
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