empty Ltd account while living tax free

**Not So Wise** · 30 November 2009, 20:31

Not that simple but if that is going to be your situation (moving to Saudi) there are ways you can vastly reduce/eliminate your tax obligations but you need to talk to a very good international tax accountant with lots of experience in that kind of thing and they are expensive (both their fee's and whatever they might set up), so expensive that unless you are talking about a large tax obligation probably not worth it.

**Olly** · 30 November 2009, 20:50

coooooooome on...that's not giving much away is it.
all you've said is "ask your expensive accountant"

**Fred Bloggs** · 30 November 2009, 20:52

If you never plan on coming back (and who would really want to, unless they simply had to?) just draw the money out and close the account. Simples.

**Olly** · 30 November 2009, 21:18

no I plan on coming back...saudi is one of the few places that's worse than the UK

**Not So Wise** · 30 November 2009, 21:38

Originally posted by Olly View Post

coooooooome on...that's not giving much away is it.
all you've said is "ask your expensive accountant"

Because that is all one should say, laws/reg's, which are being enforced and which are not, are constantly changeing.

Then there is also how your particular circumstances will affect things, like do you intend on coming back, if so when. Do you have property in the UK, does it still have a morgage outstanding that needs payments, so forth

So that you stay "legal" only a expert could even start to advise you because what could work and be legal for one person will probably not be legal/workable for the next

**Gonzo** · 1 December 2009, 00:51

In theory you might be able to do something but you should take professional advice.

You have to get right:

1. Convincing HMRC that you are no longer tax resident in the UK. I don't know all the details with this but if you are still being paid salary by a UK company I suspect that that may be more difficult than you realise. Dividends may be a better route.

2. Consider how the authorities in your new country will view your company. Some countries will treat your company as resident in their country along with you. I don't know about Saudi Arabia. They might not be interested but they might be very interested and you need to be aware of any implications.

Residency for tax purposes is complicated.

I am not an accountant.

**Billy Pilgrim** · 1 December 2009, 09:40

Originally posted by Olly View Post

no I plan on coming back...saudi is one of the few places that's worse than the UK

close it anyway - pay 10% CG tax on what is left

Startup a new one when you return

My co is closing down on the first day I get a contract where I am unable to work through it (e.g. Belgium / holland )

**ASB** · 1 December 2009, 13:09

If:-

You are coming back
You cease to be UK resident
Your company maintains UK residency
You individually cease to be UK tax resident

Then you may want to consider paying yourself a huge salary say 500,000. You then lend this back to the company through the DCA - though the money needs to physically move around. It is possible to ensure you produce a nice loss to carry forward in the company.

Be prepared for a huge fight with HMRC.
Ensure that this income is not taxable in your destination wherever it happens to be.

However if you do it absolutely right, and you specific circumstances allow it you can come back to a huge balance on the DCA to live of for a number of years, a great big tax loss to absolve CT going forwards (and sometimes even going back for 1 year). But you do need to find a very competent (i.e. expensive) accountant.

If you don't get it exactly right then you will be very very deep in the dung.

**Fred Bloggs** · 1 December 2009, 19:28

Originally posted by Olly View Post

no I plan on coming back...saudi is one of the few places that's worse than the UK

Fair enough. Must be a close run thing I guess.

empty Ltd account while living tax free