Closing Ltd. Company & Asset Taper & Cap Gains

[OnTheBench]

Hi,

i will be closing my ltd. company soon & hopefully getting the asset taper relief.

Dose anyone know if I can use my Wife's Capital Gains Tax allowance ( 8.2K ) as well as my own. This would save over 3k in tax.


Thanks.

[malvolio]

Check with a professional (taper relief is complex!) but I believe it depends on whether or not she has shares in the company. Separate taxation means she doesn't qualify as of right.

[Bradley]

Transfer

Check with a professional (taper relief is complex!) but I believe it depends on whether or not she has shares in the company. Separate taxation means she doesn't qualify as of right.

If she doesn't have any shares you could always transfer them over to her without incurring any tax.

[ASB]

If she doesn't have any shares you could always transfer them over to her without incurring any tax.

Bradley, do you think the inspector would let that through and still grant ESC16?

I'm in a similar position and will be going for ESC 16 (?) next year. Allowing the 75% taper relief I will still end up paying some CGT, but Mrs ASB will only have a chargeable gain of about 5k. Be nice to adjust the shareholdings first....

[nobody here but us chicke]

mine would

I was borderline for cgt, so I checked with my local tax office. They said yes fine. (that was the personal tax dept not corp. tax). As it happens I was just under when everything got sorted so didnt need to worry. Was nice to check and get confirmation though.

Do you need to tell the corp tax inspector though (I'm not up on these new rules about notification of share xfrs (S.42 or something?) All they should be interested in is Corp tax liability. The CGT is your personal tax.

ESC C.16.