Tax raid to hit small firm retirement nest eggs

[Fred Bloggs]

Seems to me, the best way forward is to increase pension contributions from the Ltd Co into a SIPP and take the 25% tax free lump sum (while you still can as this will likely disappear soon) then from what is left, just draw down dividends from the Ltd Co until all the money is out of the company?

[xoggoth]

A KUATB? Darn it. Now I will have to repeat: Thank heavens I closed my company and got my Windows 98 laptop out while I could.

PS Oh no I didn't say it. That's odd, can't think how there has been a closing company thread when I didn't. It's something I even tell strangers while waiting in shop queues.

[Gonzo]

Yes it will.

KUATB as they say.
http://forums.contractoruk.com/accou...-1-3-12-a.html

[Iron Condor]

Until now the shareholders in such firms have enjoyed a special arrangement under which they have paid only CGT on the proceeds instead of income tax.
This ‘concession’ is now being put on a statutory basis, but there will be a £25,000 ceiling on the amount subject to CGT. Sums above this will be subject to income tax at the shareholder’s top rate.
It is possible to avoid this tax only by paying for a formal winding-up by an insolvency practitioner or other professional, which the Revenue says could cost £7,500 for a small business whose affairs are not complicated.

Tax raid to hit small firm retirement nest eggs | Mail Online

Will this effect contractors when closing their ltd companies?
Will ltd contractors being able to negotiate a much lower fee than £7500..