Striking off/Dissolving a company

[nobody here but us chicke]

esc c16

Paul

I dont know that I wont have a problem until I know that they have accepted my personal tax return and i am past the time for being investigated.

BUT - I went into my personal tax office and went through it with them. They agreed that the business taper would apply (I had £30K in the business). they further agreed that it would be ok to reallocate the shareholding between myself and my wife (original shareholding was 99:1) to 50:50 to allow use of 2 lots of cgt allowance.

Confusion may arise because esc c16 is only available as I understand it to trading companies, but in this context that means trading companies as opposed to investment companies. There was a ruling that a trading co which has ceased trading does not automatically become an investment company. Sorry cant remember the details - try asking on accountingweb. That makes sense because otherwise there would be a loophole allowing an easy conversion of income to capital gain. This is a concession for people retiring.

I did everything myself. My guess is that the number Zeit quoted that he didnt know is the companies Corp. Tax reference.

Search the ir website for ir1.pdf, it has all the details in section c.16 (surprise)

C

[Paul Paranoia]

Thanks for the info 'nobody here'.

[Blade Runner]

Closing down a company

Have read through this forum - I have a question, if anyone can help :

In a 2 share company, both owned by myself, is it possible to take out half the balance of cash on April 5 and the other on April 6 so as to minimise the capital gains tax. I will be able to use 2 tax years allowance instead of one.

Thanks.

[ASB]

Try looking here:-

http://forums.contractoruk.com/thread5502.html

[ChimpMaster]

Have read through this forum - I have a question, if anyone can help :

In a 2 share company, both owned by myself, is it possible to take out half the balance of cash on April 5 and the other on April 6 so as to minimise the capital gains tax. I will be able to use 2 tax years allowance instead of one.

Thanks.

Unlikely you can do this because a dividend is paid "per share" -- so if you have 2 shares, each will be allocated a dividend amount and paid to you. However, it's simpler to pay yourself (in total) up to the limit you want (e.g. below the 40% tax bracket) and leave the rest in the company.

I'd advise getting an accountant though rather than trying to learn like this along the way.

[boredsenseless]

Unlikely you can do this because a dividend is paid "per share" -- so if you have 2 shares, each will be allocated a dividend amount and paid to you. However, it's simpler to pay yourself (in total) up to the limit you want (e.g. below the 40% tax bracket) and leave the rest in the company.

I'd advise getting an accountant though rather than trying to learn like this along the way.

What you said is fine, so long as you pay two 1/4 shares on april 5th and two 1/4 shares on april 6th.

However in reality I'd leave a gap between the payments as you'll look a bit of a t@sser if asked the business reason as to why the accounts are stuctured like that in an investigation

[level]

How do you work out which is your personal tax office?

[Ruprect]

How do you work out which is your personal tax office?

Isn't that on your P60?