Client Mr B owns 100% of share capital in Company XYZ LTD. Company is being dissolved and the £100,000 reserves are being distributed as a Capital Distribution.
Mr B is a higher rate tax payer.
The distribution date is after the emergency budget date, therefore at what rate is CGT charged on the disposal? 10% / 18% / 28% or a mixture?
The disposal does qualify for Entrepreneurs Relief. Do you still make a 4/9ths deduction?
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Have a read of Budget Note 20
HERE and the examples on pages 3 & 4
If after 22 June then you do not apply 4/9th but charge the qualifying part @ 10%