Reply to: Scottish independence: capital flight, or a wise precaution?

[CheeseSlice]

hmmm
Flow of money to English banks from Scotland 'raises eyebrows' in Cumbria | Money | theguardian.com

[JustinTime]

It won't be. You're just being silly now.

Mibbies "aye", mibbies "naw".
That's the gamble.

[Batcher]

A 2% cut in CT will pale into insignificance if the Boabie's worth three beans, and a button on the World's markets.

It won't be. You're just being silly now.

[JustinTime]

I would be happier if my Ltd has to pay CT to a Scottish R&C as I feel I have an input into the Scottish government and my vote counts. I feel helpless when I pay into Westminster and see how they piss the money up against the wall.

If it results in a 2% cut then so much the better.

A 2% cut in CT will pale into insignificance if the Boabie's worth three beans, and a button on the World's markets.

[Batcher]

I would be happier if my Ltd has to pay CT to a Scottish R&C as I feel I have an input into the Scottish government and my vote counts. I feel helpless when I pay into Westminster and see how they piss the money up against the wall.

If it results in a 2% cut then so much the better.

[d000hg]

it could easily be vetoed if a country or two (Spain, France, Italy) wish to be awkward

That would hardly be like them

[borderreiver]

I am Scottish. I work and live in Scotland. But my LTD Co is based in England for the very reasons and concerns you put out.

I am not Scottish but I live in Scotland and have an English Ltd. If independence happens I'll probably close down the English Ltd and just open a Scottish one, but really only because I don't want to have to file accounts with Revenue Scotland and HMRC.

One tax authority is enough for anyone I think ...

[JimboJimbo]

IndyRef

I am of the same opinion. I am pretty sure those canny foxes at thon SNP have sussed out how this will work to their gain... but they cannot have it all (cake and eating it).

On one hand they could reduce Corporation Tax - but this would probably create a degree of negative 'fatcat' publicity and I doubt the likes of Starbucks et al in the first sense would bite onto it. But again we Scots are canny and many might think it's in the best interests of Scodland (as our Scotch Hollywood ex-pat actors call it)

Secondly - is the risk that there could be a brain-skills drain / or contracts head south from the prosperous Oil and Gas and (moreso) IT/Financial Sectors that rely on Contractors. This may form the notion that there might be some lee-way in how say IR35 or Corporation Tax is administered - say 2% less - but there is little gain in this for iScotland I'd imagine in terms of revenue.

But then - looking at Swiney's (sic) GAAR legislation for Revenue Scotland under devolved tax powers I have my doubts such a cut would be reality and that it would NOT be this rosy and straightforward.

I am Scottish. I work and live in Scotland. But my LTD Co is based in England for the very reasons and concerns you put out. It probably means I'd be subject to UK Taxes (unless some crazy quasi Scotch socialist law on domiciled tax comes into play - and I am pretty sure there would be bigger fish to fry before they got to that) - but if anything it means I don't need to worry about Company Law (I think) in Scotland.

Where it may have issues is things like NI - in respect that I need to pay two batches but again, maybe not a problem. VAT - not sure - need professional advice on that one. My bank is with an English based bank - god knows I was on the phone to them long enough and it was an 020 number. And isn't RBS/HBoS pretty much English anyways?? Thank god they rejected me though so I don't bank with them.

Anyway I digress... I am pretty sure you have AMPLE time to set up your LTD Co dan saf... and at the same time if it really is of concern then start looking at contracts south of the border. Heaven knows... I might well be joining you.

[NickNick]

It is for me. The last thing that I need right now is an Argentinian-style devaluation. YMMV.

I was there then and as a foreigner it was incredible. Night in hotel; taxi to football ground; two tickets in the good seats (River Plate v Arsenal); cocktails with lunch before the match; steak dinner and wine after; taxi back to hotel = £20

As a local, somewhat less enjoyable I expect.

[Batcher]

The old dears with the free "Yes" propaganda were out in force again this morning.
It's quite hard being rude to someone that looks like your Gran, but I seem to manage.

Did you kick her in the stomach? Seems to be the new tactic of the BritNat

[JustinTime]

It has been difficult to debate with a typical rabid Yes voter.

The old dears with the free "Yes" propaganda were out in force again this morning.
It's quite hard being rude to someone that looks like your Gran, but I seem to manage.

[wattaj]

...Is all this fuss simply over Scotland changing currency from £ to groats?

It is for me. The last thing that I need right now is an Argentinian-style devaluation. YMMV.

[JB3000]

Because Capital Gains Tax is liable on the money distributed from the company during a Members' Voluntary Liquidation (MVL). That might not be a problem for a few 10s of thousands, but I'm well above that, and the tax hit would be pretty painful.

I don't particularly, and after reading one of the posts above, that might be an option if it's cheap/tax efficient to do so. I don't really care where my company is based, but I do care how much tax it pays, and how much its retained profits are worth in real terms.

Why would there be any MVL and CGT? Just simply open up a new company in England and Wales (same shareholdings as Scottish company) and change the shareholder of Scottish company from you to your English company. Then pay a dividend from Scottish company to English company. Then close Scottish company. Job done.

Is all this fuss simply over Scotland changing currency from £ to groats?

[wattaj]

Is that possible?
It sounds like an expensive option?

Who knows? It sounds like a good idea, but I'm not looking forward to putting it in front of my accountant. He has a very low "don't be a bam" threshold.

[wattaj]

It has been difficult to debate with a typical rabid Yes voter. I have a few winning strategies, but only a few.

It did occur to me that, as a finance contactor, I could start telling my friends and relatives to move their money to rUK, and convert Scottish bank notes (but don't tell anyone else) . A top secret message could spread like wildfire causing panic and a run on the banks. This in turn might prop up a No vote?

Discuss.

If only it were that easy.