Entreprenuer life time tax relief

[Golferjane]

We are a husband and wife ltd company in retail and we are selling the goodwill,fixtures and fittings, stock and the business as a going concern. The company buying us will not buy the shares,are we still entitled to entrepreneurs tax?

[Gentile]

We are a husband and wife ltd company in retail and we are selling the goodwill,fixtures and fittings, stock and the business as a going concern. The company buying us will not buy the shares,are we still entitled to entrepreneurs tax?

You may be better to ask in Accounting / Legal.

[northernladuk]

You may be better to ask in Accounting / Legal.

Better still if this is a reasonable amount of money ask an accountant.

Taking a stab at this, ESC ended in March I believe and now you have to liquidate your company but there are some bands of lower tax. You can still claim the first £25k but the rest is seen as shareholder income as normal..

The search below will pick up on 4 or 5 threads discussing it on here but also the articles published on ContractorUK

http://www.google.co.uk/search?q=liq...rlz=1I7GGLL_en

[Clare@InTouch]

Maybe - HM Revenue & Customs: Capital Gains Tax reliefs for business assets

I'd suggest you go and talk to an accountant, they can then consider your whole tax position.

[NotAllThere]

We are a husband and wife ltd company in retail and we are selling the goodwill,fixtures and fittings, stock and the business as a going concern. The company buying us will not buy the shares,are we still entitled to entrepreneurs tax?

So the purchasing company will own the goodwill, fixtures etc. and you'll still own the shares in the company? Doesn't that mean you own the company - or am I just being thick here?

[ASB]

So the purchasing company will own the goodwill, fixtures etc. and you'll still own the shares in the company? Doesn't that mean you own the company - or am I just being thick here?

I think the result of this are:-

OP Ltd sells its assets and goodwill to X for£Z
OP Ltd now has assets (cash) of £Z (plus anything not sold onto X). This sale has CGT implications of its own related to the companys tax position

OP still owns shares in OP Ltd which is now a cash shell

OP liquidates OP Ltd and makes capital distributions (or just takes dividends etc over X years to run the cash down)

Exactly how and when the transactions take place will govern what relief is available. The "business" is distinct from the shareholders. It would would be harsh if relief were not available, but ascertaining the effect of the transactions before entering into them would be sensible.