folding ltd and moving from UK to DK - tax question

[dsc]

I know this is a long shot and most will say talk to a specialist (I'm all ears if you know one), but here goes anyway.

I might decide to move to Denmark end of this year / next year, I was planning to fold my ltd using entrepreneur's relief (is this still a thing?) but it can be a lengthy process, so not sure if it's going to be done by the time we pack up and go. Lets assume it's not done and we go, I'll be joining a company there on a perm basis and then I get the payout from the ltd. Am I correct to think this is money with tax already paid on and thus I don't have to report this to anyone or pay more tax on it? Denmark seems to tax absolutely everything and I'm worried they will class this as extra income and want their chunk, which would then negate the whole "relief".

[jamesbrown]

ER --> BADR (Business Asset Disposal Relief) but, yes, it still exists, albeit with a massively reduced lifetime ceiling of £1m.

Speak to Sue B, she is our resident expert on all things related to international working and taxation.

( As an aside, it won't be income, it will be a capital gain and the relevant date is when you receive the distribution(s), the largest of which would ordinarily happen very shortly after the start of any MVL, even if HMRC approval takes many months or even years. )

[dsc]

Cheers! much appreciated, I'll speak to Sue then.

Re MVL I always assumed that distribution cannot start till HMRC says all is paid and good, interesting to see it's the other way around.

[Fred Bloggs]

Cheers! much appreciated, I'll speak to Sue then.

Re MVL I always assumed that distribution cannot start till HMRC says all is paid and good, interesting to see it's the other way around.

If there's a dual tax treaty between UK and DK, that will tell you what tax is levied on what income or capital by which country.

RDR3 guidelines from HMRC is an essential read for anyone leaving or returning to the UK.

Between those two documents they tell you just about everything you need to know.

[Eirikur]

I might decide to move to Denmark end of this year / next year,

Are you EU citizen or do you already have a DK residence permit? If not it will be very difficult thanks to Brexit

[BlasterBates]

I know this is a long shot and most will say talk to a specialist (I'm all ears if you know one), but here goes anyway.

I might decide to move to Denmark end of this year / next year, I was planning to fold my ltd using entrepreneur's relief (is this still a thing?) but it can be a lengthy process, so not sure if it's going to be done by the time we pack up and go. Lets assume it's not done and we go, I'll be joining a company there on a perm basis and then I get the payout from the ltd. Am I correct to think this is money with tax already paid on and thus I don't have to report this to anyone or pay more tax on it? Denmark seems to tax absolutely everything and I'm worried they will class this as extra income and want their chunk, which would then negate the whole "relief".

I would enquire as you are right that once you are resident in Denmark it will be classified as part of your worldwide income that should be declared even if it's taxed in the UK.

[Fred Bloggs]

I would enquire as you are right that once you are resident in Denmark it will be classified as part of your worldwide income that should be declared even if it's taxed in the UK.

Exactly. That's why the dual tax treaty, if there is one, is so important. And likewise RDR3 for UK tax status and split year treatment etc....

[dsc]

Are you EU citizen or do you already have a DK residence permit? If not it will be very difficult thanks to Brexit

Yeah, dual citizenship, so all the Brexit tulipe doesn't really apply