I have asked my accountant about this, as I'm 3 months away from finishing my current 2 year contract and I'm also about to move house around the same time. It's been suggested to me that this is an ideal time to close company down and take advantage of Entrepreneur’s relief to get the money out, and possibly have a month or two off to sit in front of the TV watching the World Cup. My Accountant has stated the following:
"If HMRC felt the business was not discontinued but merely transferred to another company you could not get the relief. Therefore there would need to be a reasonable length of time before you start trading through the new company."
I trust my accountant very much, but I'm unsure if they are being a little cautious with advice. I work in IT and would start a new company doing exactly the same thing. Is this at all risky ? How much time off should I leave before starting up again ? I could always go umbrella for a year if I got another contract very soon I suppose. Has anyone had experience of doing this before ? Has anybody been refused the 10% relief and had to pay the full CG Tax ?
thanks
Nick
"If HMRC felt the business was not discontinued but merely transferred to another company you could not get the relief. Therefore there would need to be a reasonable length of time before you start trading through the new company."
I trust my accountant very much, but I'm unsure if they are being a little cautious with advice. I work in IT and would start a new company doing exactly the same thing. Is this at all risky ? How much time off should I leave before starting up again ? I could always go umbrella for a year if I got another contract very soon I suppose. Has anyone had experience of doing this before ? Has anybody been refused the 10% relief and had to pay the full CG Tax ?
thanks
Nick
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