Striking off £25000 capital

is the £25,000 still relevant ?

Didn't find your answer?

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

Replies (10)

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By Polly-Esther Kakz
09th Aug 2016 14:05

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.

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Replying to Polly-Esther Kakz:
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By Polly-Esther Kakz
09th Aug 2016 14:41

.

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By cheekychappy
09th Aug 2016 14:09

£25,000 is still relevant.

Though there are other issues that it seems you have blindly ignored.

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By Polly-Esther Kakz
09th Aug 2016 14:11

Ooh, I hadn't noticed the blindly ignored issue!

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Replying to Polly-Esther Kakz:
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By frankdavid
09th Aug 2016 14:14

Polly-Esther Kakz wrote:

Ooh, I hadn't noticed the blindly ignored issue!

I know about obtaining clearance, what else have I overlooked ? thanks

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Replying to frankdavid:
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By Polly-Esther Kakz
09th Aug 2016 14:21

There is no clearance. The problem is with the words "has paid dividends to bring down remaining profits to £25,000".

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Replying to Polly-Esther Kakz:
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By bernard michael
09th Aug 2016 14:37

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?

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Replying to bernard michael:
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By frankdavid
09th Aug 2016 15:20

bernard michael wrote:

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?

No creditors at present, no warranties o/s, no claims made, there will be no preferences. Cant give any more details, client just being careful like he did when forming Ltd Co in first place

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Replying to Polly-Esther Kakz:
By mwngiol
09th Aug 2016 15:17

Is this about nuns again?

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Replying to mwngiol:
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By frankdavid
09th Aug 2016 15:21

mwngiol wrote:

Is this about nuns again?


?
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