Originally posted by jamesbrown
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Previously on "Close limited company or invest as closed investment company"
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Originally posted by ctcheck View Post
Is there a restriction like that? I thought this was relevant if it is in same area.
Has anyone started something new in completely different area (e.g. New company in Health services & old company in IT)?
Did they face any HMRC questioning?
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Originally posted by PerfectStorm View PostI believe a MVL stops you being a director for 3 years or so(
Has anyone started something new in completely different area (e.g. New company in Health services & old company in IT)?
Did they face any HMRC questioning?
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Originally posted by PerfectStorm View PostMVL stops you being a director for 3 years or so
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I know you've said you 'don't plan' to do contracting but I believe a MVL stops you being a director for 3 years or so, just do you know it's removing the option for you somewhat should you not get on with the permie way of doing things... you may have to go umbrella
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Thanks guys. i have to be honest. i did consider MVL, but as always its the 'good word' of google that suggested its a bad idea.
Thanks for your time and valuable inputs.
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Your entrepreneurs relief comment doesn't seem to make much sense (ignoring pedantic things that if anything you'd qualify for business asset disposal relief now!).
Re your proposed plan on 3 years of £40k pension contributions, do remember that:
- you'll almost certainly have some pension contributions via your new employed role, so that will eat into your £40k annual cap.
- you'll likely hope to get corporation tax relief on at least some of the pension contributions your company does make.
Combination of the above two factors may mean you'd be looking at more than 3 years to get all funds out that way, unless you had hefty unused brought forward pension allowance.
You could buy investments with the company's funds, and keep it going as an investment company.
Have you considered a Members Voluntary Liquidation (MVL)? Yes some will consider me biased, but your situation seems to be exactly what it's well suited for. You get all the cash out swiftly, with modest personal tax. You can then invest as you see fit personally with "after tax" money, or pass to your kids/invest in their education/whatever you fancy.
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Close limited company or invest as closed investment company
hi,
I have about 120K lying in my company account and keen to close it. I am moving into permanent employment and don't plan to return to contracting .Was thinking if I can over the next 3 years withdraw the max pension limit 40K into my pension and finally close the company after 3 years? Am not sure if I will face any challenges in doing so. ? Does it sound like a sensible approach ? I won't be eligible for entrepreneurs relief either as my company has been active for more than 5 years.
I could also just make it a closed investment company and invest the 120K . Then make my children a shareholder in the company when they turn 18 and they can then have access to the company funds ?
Any suggestions thoughts?
Thank you very much in advance for your advice and help.
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