• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.

You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:

  • You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
  • You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
  • If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.

Previously on "Close limited company or invest as closed investment company"

Collapse

  • ctcheck
    replied
    Originally posted by jamesbrown View Post

    As noted above, "the same or a similar trade or activity". So if it's a completely different trade or activity, you're fine. Bear in mind that anything in IT will most likely be considered the same trade (even if it requires that you reskill). But if you went from IT to chicken farming, no problem.
    That is what even I thought..as long as it is not to do with IT

    Leave a comment:


  • jamesbrown
    replied
    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?
    As noted above, "the same or a similar trade or activity". So if it's a completely different trade or activity, you're fine. Bear in mind that anything in IT will most likely be considered the same trade (even if it requires that you reskill). But if you went from IT to chicken farming, no problem.

    Leave a comment:


  • ctcheck
    replied
    Originally posted by PerfectStorm View Post
    I believe a MVL stops you being a director for 3 years or so(
    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?

    Leave a comment:


  • jamesbrown
    replied
    Originally posted by PerfectStorm View Post
    MVL stops you being a director for 3 years or so
    No, you lose the capital treatment if you carry on the same or a similar trade or activity within two years of a distribution that received capital treatment. Trade and activity are far more broadly drawn than being a director.

    Leave a comment:


  • PerfectStorm
    replied
    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

    Leave a comment:


  • rahul135aws
    replied
    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.

    Leave a comment:


  • Fred Bloggs
    replied
    Yes, MVL. I think Maslins nailed it with MVL.

    Leave a comment:


  • courtg9000
    replied
    Plenty of good investment opportunities on 100k

    Leave a comment:


  • Maslins
    replied
    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.

    Leave a comment:


  • Lance
    replied
    Originally posted by rahul135aws View Post
    I won't be eligible for entrepreneurs relief either as my company has been active for more than 5 years.
    Who told you that?

    Leave a comment:


  • 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.

    Stay safe

Working...
X