Making use of capital gains allowance?

[james14]

If you are a contractor, there is probably little value in the 'company' for its sake. BP, for instance, is worth more than just the value of its assets; the difference is called goodwill. Your company is probably worth exactly what its bank balance is worth - unless of course you make widgets or have lots of employees whom you supply as contractors.

If you keep extra money in the company in order to increase the value of the shares, then the company ceases to be a trading company.

Not much hope, I fear.

[ASB]

Hi,

Is there any means of making use of the personal Capital Gains allowance to draw money from a company tax free?

I believe the allowance is close to £10K pa.

I am think that I could buy something from the ltd (shares?) that are then valued at a £10K profit and are then sold back to the ltd. The profit would be put on the tax return.

Any ideas if something like this is possible?

Yes, it's possible. The company can buy in its own shares. Talk to your accountants about your position and what you are trying to achieve.

But, what Alan said is the likely result. Little hope.

[King Cnvt]

The only thing you could do with your company is when the company is closed after you have ceased using it, nothing is available whilst you are still trading.

The current limit for CGT is £9200

Alan

You just need to be more creative.

[Nixon Williams]

The only thing you could do with your company is when the company is closed after you have ceased using it, nothing is available whilst you are still trading.

The current limit for CGT is £9200

Alan

[King Cnvt]

Hi,

Is there any means of making use of the personal Capital Gains allowance to draw money from a company tax free?

I believe the allowance is close to £10K pa.

I am think that I could buy something from the ltd (shares?) that are then valued at a £10K profit and are then sold back to the ltd. The profit would be put on the tax return.

Any ideas if something like this is possible?