i owe 56k via settlement. 22k of this "Unprotected". i have aprox cash reserves of 70k in a dormant ltd company i am going to wind up (paye employee now, in high tax bracket). Looking at this thread, i am going to wind up company and get cash as Capital distribution. If I was to go down 2019 LC route - could i put the funds from the capital distribution into my personal pension, then net this off against the loans i have outstanding 5/4/19?
i was thinking of settling the protected years, and writing those loans off. I could then add the 80k of unprotected loans onto my earnings - then using the ~60k i have in cash to put into my personal pension. my last contribution was in Feb 2016, however adding these up, the 60k will still be under the past three years of allowance. So that means in theory i would only pay tax on the extra 20k (~ 9k tax).
the downside would be that i'd still have 80k loans outstanding, and would be at the mercy of any future retro tax laws. (10 year IHT charge and all that).
If any of that makes sense, is if a viable solution? Think i need an advisor - any suggestions?
i was thinking of settling the protected years, and writing those loans off. I could then add the 80k of unprotected loans onto my earnings - then using the ~60k i have in cash to put into my personal pension. my last contribution was in Feb 2016, however adding these up, the 60k will still be under the past three years of allowance. So that means in theory i would only pay tax on the extra 20k (~ 9k tax).
the downside would be that i'd still have 80k loans outstanding, and would be at the mercy of any future retro tax laws. (10 year IHT charge and all that).
If any of that makes sense, is if a viable solution? Think i need an advisor - any suggestions?
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