esc c.16
remember that technically the cash in the company counts as income when the co. closes, it is only a CONCESSION bt the ir that allows you to treat it as capital gain. You will find that you have to apply for the concession and make a number of undertakings which amount to a declaratiom that you are ceasing to trade.
If you do as you suggest it will not be forthcoming. further they can come after you for the income tax that you should have paid, and i dare say bar you as a director ( well it looks like fraud / tax evasion to me )
but hey ! go ahead
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Previously on "Close company, extract gain, open new company"
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Guest replied
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Guest repliedI have done it a few years back and used the basic capital gains allowance of around 7K at the time, not sure about the taper relief aspect. I had a genuine reason for doing it as I was going overseas and didnt open a new Co for a couple of years. My very much by the book accountant was happy with it at the time.
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Guest repliedRe:Comment
It would be nice if you could ... but the Revenue have specific powers to stop that sort of thing.
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Guest started a topic Close company, extract gain, open new companyClose company, extract gain, open new company
There seems to be a nice tax break to extract retained earnings from my ltd company if I shut it down. Any proceeds from winding down are subject to capital gains, but get asset taper relief of 75% as I have had the company over two years. The remainder is subject to capital gains but I get (I think) £8,200 capital gains allowance - so on my £50k retained earnings have no personal dividend tax or capital gains tax payable.
Any problem doing that, extracting the retained earnings, and starting up a new ltd company again? This would be a once off.
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