ESC 16 and CGT issues

ESC 16 and CGT issues

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I have a client who has worked as a consultant through a husband and wife personal service company.......

Both taken a low salary and dividends up to higher rate band.....

the contracts have lasted over 2 and half years and been profitable and approximately £100000 in co bank.....

There are no further contracts in pipeline and the consultant will take up an employed job with a third party company (no connection to his company)......

Which leaves how to get the money out of company?

I presume that we could apply for ESC 16 before 5th April 2008 and take the money as a capital distribution but will business asset taper apply as I know the Revenue can argue in certain circumstances that there is too much money in the company and therefore non business asset taper applies?

Will this apply here?

Further, if the consultant (and his wife)....I am aware of the income splitting rules......
wish to form another company in say 6 months or a year... ,if the employment does not work out......, what will be the issues if any?

Would it be better or safer to wait until after 6th April 2008 when the new CGT rules apply?

Should I email this to the Chancellor for his expert opinion as I am not sure if he is the only person in the country who can answer my last query........????

Thanks for your help in advance?

Mike B
MICHAEL B

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