LTD calculator

[Ruprect]

I believe you are right. I always felt pretty uncomfortable with the idea of being a serial business closer downer over the long term. But SJD defend it as far as I know, saying they never had a problem. It's academic now anyway since the changes in CGT taxation. I will have to work out how much I retain per year after taxes but I do not think it is anywhere near to 73%. I pay £10k salary and draw out divis to just under the 40% band. Anything left over goes into a SIPP.

AFAIK, FWIW and IANAA, but the new tax legislation means that you'll only get the entrepreneur's relief once in your lifetime I believe. Not sure whether you'd be able to see the missus your shares before closing to make that twice effectively, but its still limited.

[LisaContractorUmbrella]

Yup as stated above by Vectraman

I know - I just wanted to labour the point - for obvious reasons

[Fred Bloggs]

AFAIK, FWIW and IANAA, but the new tax legislation means that you'll only get the entrepreneur's relief once in your lifetime I believe. Not sure whether you'd be able to see the missus your shares before closing to make that twice effectively, but its still limited.

You still lose the very valuable taper relief.

[rootsnall]

I believe you are right. I always felt pretty uncomfortable with the idea of being a serial business closer downer over the long term. But SJD defend it as far as I know, saying they never had a problem. It's academic now anyway since the changes in CGT taxation. I will have to work out how much I retain per year after taxes but I do not think it is anywhere near to 73%. I pay £10k salary and draw out divis to just under the 40% band. Anything left over goes into a SIPP.

I'm thinking of SIPPing anything over the 40% band to clear out my bank account at the end of this year. There is still debate on if you can only pay up to your 10K salary into the SIPP, anything more is at the discretion of your local tax inspector ( or words to that effect ).

[Fred Bloggs]

I'm thinking of SIPPing anything over the 40% band to clear out my bank account at the end of this year. There is still debate on if you can only pay up to your 10K salary into the SIPP, anything more is at the discretion of your local tax inspector ( or words to that effect ).

An IFA posted the details of a case that was supposed to settle that point in favour of larger "reasonable" contributions over on another website (Shout99). I think that debate is largely settled now for most cases.

[VectraMan]

AFAIK, FWIW and IANAA, but the new tax legislation means that you'll only get the entrepreneur's relief once in your lifetime I believe. Not sure whether you'd be able to see the missus your shares before closing to make that twice effectively, but its still limited.

I thought it was up to £1m in your lifetime, not a once only deal.

I've got some way to go before the £1m limit kicks in.

[Crossroads]

I thought it was up to £1m in your lifetime, not a once only deal.

I've got some way to go before the £1m limit kicks in.

Correct. Lifetime £1m limit for all CGT related disposals.

[GreenerGrass]

An IFA posted the details of a case that was supposed to settle that point in favour of larger "reasonable" contributions over on another website (Shout99). I think that debate is largely settled now for most cases.

I asked my accountant whether I was limited to £10k (e.g. matching my salary) in company pension contributions and they referred to the word "reasonable". Vague indeed. Does that mean they won't care if you pay £12 or 15k into a pension, but will if its £30 or 40k - or does it have to be 80k+ before they sit up and take notice? Ridiculous.

[Fred Bloggs]

I asked my accountant whether I was limited to £10k (e.g. matching my salary) in company pension contributions and they referred to the word "reasonable". Vague indeed. Does that mean they won't care if you pay £12 or 15k into a pension, but will if its £30 or 40k - or does it have to be 80k+ before they sit up and take notice? Ridiculous.

I agree. But this is the world we now live in. What I would do if I were you, is this. If you seriously want to punt 30 or 40k into a SIPP then ask advice from an IFA. I think that providing you've taken advice then you'd be pretty bullet proof. Could be worth paying for an hour or two of somebody's time for that amount of money being invested? My SIPP is with HL and I do find their customer services are very good compared to many other companys.