Government clamps down on closing down company to extract retain profit

[max]

Not a good idea.... HMRC would not be happy with that. You really can't get away with doing it on a regular basis.

Do you have a link to support this assertion?

Sounds like FUD to me...but please provide a link if you have it..

I don't remember the pvt equity industry saying "you can't really do it on a regular basis"

It's one thing to say HMRC wouldn't be happy...but we shouldn't base our tax affairs on their happiness, but rather the current tax laws

[dude69]

Do you have a link to support this assertion?

Sounds like FUD to me...but please provide a link if you have it..

I don't remember the pvt equity industry saying "you can't really do it on a regular basis"

It's one thing to say HMRC wouldn't be happy...but we shouldn't base our tax affairs on their happiness, but rather the current tax laws

No link, but it's just seen as inconsistent with a proper business, rather than a tax-dodging IR35-caught company. So if you want to attract attention, by all means do it, and defend your IR35 status

[dude69]

After the first or second year, the taper relief was less than 75% ... I assume that would have been the reason for SJD's 3 years recommendation

taper relief is 50% after 1 year, 75% after 2 years. extra year is presumably only to not look too over-eager in shutting down companies every 5 minutes - which is less relevant now, for people looking to shut down before April 2008 - something a lot of people should do, as it could easily amount to a month's wages in saved taxes compared to CGT liability post April.