In the run up to the 2019 retro tax, if might make sense to unwind an EBT. Let's say you own the company and have taken out £1mill. HMRC says that if you pay the loan back you are home free.
1) Do you need to pay the stipulated loan interest rate to avoid BIK?
2) All the time the company has been getting Corp tax deductions which HMRC didn't object to. What is HMRC's current thinking on these historic CT deductions.
3) Can you pay the loan back to the company or does it have to go via the trustee? Assume direct.
4) So your company which has been dormant now has £1mill and buys a franchise or does something else and then is sold and you pay entrepreneurs relief (possibly property - accepting pitfalls of ER on a prop coy).
You get ER on the sale of the business, are you home free?
Thoughts on a postcard, or this forum. Somehow you still need to get your £1m out.
1) Do you need to pay the stipulated loan interest rate to avoid BIK?
2) All the time the company has been getting Corp tax deductions which HMRC didn't object to. What is HMRC's current thinking on these historic CT deductions.
3) Can you pay the loan back to the company or does it have to go via the trustee? Assume direct.
4) So your company which has been dormant now has £1mill and buys a franchise or does something else and then is sold and you pay entrepreneurs relief (possibly property - accepting pitfalls of ER on a prop coy).
You get ER on the sale of the business, are you home free?
Thoughts on a postcard, or this forum. Somehow you still need to get your £1m out.
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