Converting to Permie - Query on closing Ltd company

[minstrel]

Anyone know roughly how long it takes to get approval for ESC C16? weeks/months/years?

I think it depends on your local tax office, but I did it earlier this year and it only took a few weeks.

[Mr.Whippy]

I think it depends on your local tax office, but I did it earlier this year and it only took a few weeks.

OK, thanks. It's something I'm also considering currently so just wanted an idea of how long it'd be before I could get my hands on the cash.

[Billy Pilgrim]

OK, thanks. It's something I'm also considering currently so just wanted an idea of how long it'd be before I could get my hands on the cash.

I think you can get your hands on the cash fairly quickly - whether you can (personally) keep 90% of it I think depends on you (personally) applying for Entrepreneurs releif doesn't it ????

Forgive me if I am wrong !!

[minstrel]

Just to clarify there are two parts to this:

• ESC C16 - this is the agreement you need from your local tax office to allow the remaining money in the company to be treated as a capital distribution rathen than a dividend.
  
• Entrepreneurs Relief - allows you to pay 10% CGT (rather than 18%) on the capital distribution assuming ESC C16 is agreed. This is claimed via your personal tax return.

Ideally you should probably wait until ESC C16 is approved before taking the cash out, but I suspect it is unlikely any one would care if you withdrew the money from the company account before you get the ESC C16 approval from HMRC.

My previous accountant said this it was fine to take the money out straight away as long as VAT, Corporation Tax etc had been paid.