I have attempted to do my own research on this but just had a few queries. I have also asked my accountant but their response didn't sound right to me.
I have about £29k left in my LTD company account.
My thought process on what I should do:
1) Pay myself dividends to get the retained profits below £25k
2) Apply for informal strike off
3) take the rest of the money as capital distribution on closure
4) Hopefully pay 10% capital gains tax on the amount above the CGT threshold using entrepreneur's relief (I will be a higher rate tax payer this year most likely)
Does this sound reasonable and correct?
Regarding entrepreneur's relief; do you think I would qualify based on the below:
- I am the sole director of the LTD company (no other employees)
- The company was fully active and paying my salary from July 2017-March 2020
- The last time the company took in money through trading was July last year. Note; the company is still active on Companies House.
- Since July last year I have been working in a permanent role. The last time I paid myself dividends was July 2020. The last time the company took in money was July 2020.
There just some nuances in the rules around 24 months leading to closure of company so I was wondering if I need to act fast to get this tax relief.
Thank you
I have about £29k left in my LTD company account.
My thought process on what I should do:
1) Pay myself dividends to get the retained profits below £25k
2) Apply for informal strike off
3) take the rest of the money as capital distribution on closure
4) Hopefully pay 10% capital gains tax on the amount above the CGT threshold using entrepreneur's relief (I will be a higher rate tax payer this year most likely)
Does this sound reasonable and correct?
Regarding entrepreneur's relief; do you think I would qualify based on the below:
- I am the sole director of the LTD company (no other employees)
- The company was fully active and paying my salary from July 2017-March 2020
- The last time the company took in money through trading was July last year. Note; the company is still active on Companies House.
- Since July last year I have been working in a permanent role. The last time I paid myself dividends was July 2020. The last time the company took in money was July 2020.
There just some nuances in the rules around 24 months leading to closure of company so I was wondering if I need to act fast to get this tax relief.
Thank you
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