Oh Darling...

[Billy Pilgrim]

They both get to the same result.

You've done:

((100K - 75%) - 9,200) * 40%

which is the same as:

(100k * 0.25) - 9,200) * 40%

which is also equal to:

(100k - (9,200 * 4)) * 10%

and then:

(100k - 36,800) * 10%

It all works out the same. THEPUMA has just factored the 75% taper relief into the 40% tax to get 10% rather than taking it off the amount available for distribution.

cheers...gottcha...deary me its been a long day!!

Now it all makes sense.....at last!!!

[minstrel]

The way the PUMA has calcualted things is nowt like the way I have....which I have lifted directly from SJD accountants guide.....

They use 75% taper relief...like I have done..

At NO point anywhere is 10% mentioned...which is why I am dead confused!! Is the way SJD have worked things completely wrong (which I doubt)..

BTW - what a great way to spend a Friday night ;-)

They both get to the same result.

You've done:

((100K - 75%) - 9,200) * 40%

which is the same as:

(100k * 0.25) - 9,200) * 40%

which is also equal to:

(100k - (9,200 * 4)) * 10%

and then:

(100k - 36,800) * 10%

It all works out the same. THEPUMA has just factored the 75% taper relief into the 40% tax to get 10% rather than taking it off the amount available for distribution.

[Billy Pilgrim]

Your calculation is right - check out THEPUMA's post here - this gives you all the pre and post calculations.

The way the PUMA has calcualted things is nowt like the way I have....which I have lifted directly from SJD accountants guide.....

They use 75% taper relief...like I have done..

At NO point anywhere is 10% mentioned...which is why I am dead confused!! Is the way SJD have worked things completely wrong (which I doubt)..

BTW - what a great way to spend a Friday night ;-)

[minstrel]

Cheers! I've searched...I've read loads of stuff...and I'm STILL not sure where the land lies!

So is my calc above completely off the mark? Sure I've seen something similar in the SJD guide?

Your calculation is right - check out THEPUMA's post here - this gives you all the pre and post calculations.

[Billy Pilgrim]

Sorry Billy...as others have said, as well the flat rate 18% CGT coming in as planned, Darling has announced a 10% "entrepreneur allowance" for company disposals up to £1m (lifetime limit).

What is not 100% clear yet is whether the 10% rate will apply to ESC C16 disposals. And even if it did, ESC C16 may or may not be granted after all.

Do a search - all the info you need is here.

Cheers! I've searched...I've read loads of stuff...and I'm STILL not sure where the land lies!

So is my calc above completely off the mark? Sure I've seen something similar in the SJD guide?

[Crossroads]

Sorry Billy...as others have said, as well the flat rate 18% CGT coming in as planned, Darling has announced a 10% "entrepreneur allowance" for company disposals up to £1m (lifetime limit).

What is not 100% clear yet is whether the 10% rate will apply to ESC C16 disposals. And even if it did, ESC C16 may or may not be granted after all.

Do a search - all the info you need is here.

[max]

ok then....at the minute..closing a co (and correct me if I am wrong...which is why I am asking the question in the first place.....)

100K -- 75% taper relief == 25K

25K minus 9 K CGT allowance == 16K

40% of 16K == £6.8K


After April -- what is the calc...sure I have read somewhere that taper relief is being abolished and CGT is a flat 10%...

Or a meringue??

Where did you read that then

http://www.contractoruk.com/

?

[Billy Pilgrim]

Do you have people to wipe your arse too?

CGT payable will probably be the same. Depends on i) if ESC C16 is granted on your company closure and if ii) ESC C16 still applies post April 2008.

ok then....at the minute..closing a co (and correct me if I am wrong...which is why I am asking the question in the first place.....)

100K -- 75% taper relief == 25K

25K minus 9 K CGT allowance == 16K

40% of 16K == £6.8K


After April -- what is the calc...sure I have read somewhere that taper relief is being abolished and CGT is a flat 10%...

Or a meringue??

[oracleslave]

Do try and keep up Billy.

[max]

...can someone please do me a quick calculation using the pre and post April 2008 CGT rules if I choose to close my company....

Assume that I have 100K (I wish) profit sat in company coffers....and have a full (9K) CGT allowance left for the year.

thanks a lot

Have you not heard.......it's been canned!?!

£1,000,000 lifetime allowance to declare...from april.

Do a news search...darling/cgt.


Oh...and had the change gone through...you'd need to be non trading for 3 months, to have the company closed down, so you'd be too late anyway.

[Crossroads]

Do you have people to wipe your arse too?

CGT payable will probably be the same. Depends on i) if ESC C16 is granted on your company closure and if ii) ESC C16 still applies post April 2008.

[Billy Pilgrim]

...can someone please do me a quick calculation using the pre and post April 2008 CGT rules if I choose to close my company....

Assume that I have 100K (I wish) profit sat in company coffers....and have a full (9K) CGT allowance left for the year.

thanks a lot