Opening New limited company

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northernladuk replied

20 March 2021, 16:51
Originally posted by mike78 View Post

I was having a limited company with my Brother. I was not having voting right and holding less than 10% share.
I sold my share to my brother and resigned as director in Dec2020.
My brother liquidate the company recently and will claim ER.

If I open new limited company in UK on my sole name. would that be issue for my brother to claim ER ?
Any other issue which I have missed ?

Regards

No. Why on earth would it?

Whether your brother is entitled to ER is a different question, but not related to you starting a new company.

I've got a feeling we really don't want to be going there.
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Lance replied

20 March 2021, 13:54
Originally posted by mike78 View Post

I was having a limited company with my Brother. I was not having voting right and holding less than 10% share.
I sold my share to my brother and resigned as director in Dec2020.
My brother liquidate the company recently and will claim ER.

If I open new limited company in UK. would that be issue for my brother to claim ER ?
Any other issue which I have missed ?

Regards

I don't see why it would be an issue. You had no stake in the company when it was liquidated.
Whether your brother is entitled to ER is a different question, but not related to you starting a new company.

(unless this some complicated wheeze to avoid tax, but given the facts as stated it should be fine IMO)

IANAL
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mike78 replied

20 March 2021, 13:54
Originally posted by ladymuck View Post

Is your brother going to be part of the new company? Are the pair of you essentially phoenxing but changing who has significant control in order to max out tax reliefs?

He won't be part of the new company.
Leave a comment:
ladymuck replied

20 March 2021, 13:29
Originally posted by mike78 View Post

I was having a limited company with my Brother. I was not having voting right and holding less than 10% share.
I sold my share to my brother and resigned as director in Dec2020.
My brother liquidate the company recently and will claim ER.

If I open new limited company in UK. would that be issue for my brother to claim ER ?
Any other issue which I have missed ?

Regards

Is your brother going to be part of the new company? Are the pair of you essentially phoenxing but changing who has significant control in order to max out tax reliefs?

Last edited by ladymuck; 20 March 2021, 13:30. Reason: Forgot to quote as I'm sure this will go south and it's a post worth preserving :)
Leave a comment:
mike78 started a topic Opening New limited company

20 March 2021, 13:22
Opening New limited company

I was having a limited company with my Brother. I was not having voting right and holding less than 10% share.
I sold my share to my brother and resigned as director in Dec2020.
My brother liquidate the company recently and will claim ER.

If I open new limited company in UK on my sole name. would that be issue for my brother to claim ER ?
Any other issue which I have missed ?

Regards

Last edited by mike78; 20 March 2021, 13:54.
Tags: company director, company formation, entrepreneurs relief, hmrc, liquidation