Got a client who wants to ring fence his business against possible old claims, which probably wont arise but he's being cautious. He's set up a newco doing same work, has paid dividends to bring down remaining profits to £25,000 and I was all set to treat remainng payment as a capital distribution (no relief claimed for entrepreneurs relief !) prior toi striking ofJust noticed the new rules on Transactions in Securities but cant find anwhere that says there is a limit below which these rules dont apply. Can anyone advise if the old £25000 limit for CGT is still relevant ?
Thanks
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Yes. It is sill relevant.
The new rules apply to actual distributions on a winding up.
The continuing "25,000" rule simply treats distributions (otherwise than on a formal winding up) as capital distributions.
£25,000 is still relevant.
Though there are other issues that it seems you have blindly ignored.
There is no clearance. The problem is with the words "has paid dividends to bring down remaining profits to £25,000".
Are you sure that in paying the dividends he isn't committing fraudulent preference against any creditors.
What stage have the potential creditors/claims reached?