For those concerned about exactly how the bonds work, hopefully this page from bis.gov.uk will help.
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Closing down company - liquidation - post ESC C16 changes
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Originally posted by Waldorf View PostTake a look at this factsheet http://www.nixonwilliams.com/images/...%20Company.pdf
It seems to qualify for entrepreneurs relief you need:
1. You must have held the shares in a trading company for at least 12 months up to the date trade ceased;
2. Hold at least 5% of the issued share capital of the trading company; and
3. The holder of the shares must have been an officer or an employee of the company throughout the
period concerned.
The linked document carries on explaining that:
As a rule of thumb, provided the following conditions are met HMRC should accept the company to be a trading
company:
* Non Trading income does not exceed 20% of the company’s income; and
* Net current assets do not exceed annual turnover.
Does this mean that if the Net current assets in the company exceed the annual turnover then you won't qualify for the Entrepreneurs' relief?Comment
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Originally posted by mickael28 View PostDoes this mean that if the Net current assets in the company exceed the annual turnover then you won't qualify for the Entrepreneurs' relief?
You seemingly can ask HMRC whether they're happy to consider the company trading (hence qualify for entrepreneurs relief assuming all other criteria met). See here.Comment
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Originally posted by mickael28 View PostDoes this mean that if the Net current assets in the company exceed the annual turnover then you won't qualify for the Entrepreneurs' relief?
http://forums.contractoruk.com/accou...ml#post1574349
You will find information on "rules of thumb" and "guidance" but no black and white answer. To be fair, I am not sure where the net current assets:annual turnover ratio test comes from - though its probably tied up in the overall assessment of investment activity vs trading activity. Alan might be able to elaborate further.2012 CUK Reader Awards - '...Capital City Accountancy, all of whom were outside the top three yet still won compliments from CUK readers for their services' - well, its not an award, but we'll take it! - Best Accountant (for IT contractors) category
2011 CUK Reader Awards - Top 3 - Best Accountant (for IT contractors) category
|| Check us out at: http://www.linkedin.com/company/capi...ccountancy-ltdComment
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