can client get benefit of CGT at 10% on "income"?
My doctor client has been approached by another firm of accountants with a proposal that the client incorporates the medical private practice.
Facts: NHS salary £90k, sole trader private practice profits £200k. IR35 would not apply if incorporated and the client is unmarried.
Proposal: put private practice into ltd co. Live off NHS salary plus say £50k of dividends in order to fund large mortgage on own home. Leave reserves to accumulate over a number of years until retained profits reach say £750k. Then pay a liquidator say £5k to wind up the company, distribute net assets, pay CGT at 10% on the £750k.
Being a cautious soul, I pointed out some possible problems, if only that in say 5-6 years time, the tax rules on which the plan is based may have been changed.
However, assuming no change in tax law – or HMRC’s interpretation of it! – do you think it would work as proposed?
Thanks in advance.
- Home Use Costs in Company Accounts ? 270 6
- Any Scottish members out there? 13,544 502
- Sick pay 210 6
- Directors self assessment 99 2
- Employer's Helpline 204 1
- Employment Allowance Incorrectly Claimed for Domestic Payroll 76 2
- Commercial rental property - still Schedule A? 180 1
- Now Scotland has voted "No", when does England get to vote? 1,749 70
- Travel and Subsistence expenses while abroad 1,076 8
- Undeclared rental income 350 6
- How to prove to HMRC that you was not self employed? 933 27
- Penalties for an amended p35 (2012/13) 114 2
- 2 sole traders merging to become a limited company what do they need? 295 10
- Unfurnished Lettings Expenditure 246 6
- Capital Gains Tax on title transfer 442 20
- cross border vat 148 3
- Which profit figure to use 205 2
- Audit partner? 375 7
- home office expenses as a director 224 6
- Drop box Storage 943 9
- Raiders of the Lost Tax File 1,409
- Chartered Accountant in County Down N.Ireland 537
- National Insurance 438
- Non Resident 328
- Hands on experience of Digita 258
- Best way to take money from a business if you have unlimited EIS allowances? 246
- Does anyone use PS Financials accounting software out there? 163
- Umbrella pay services 140
- EPS Analysis - Change to EURO 121
- VAT on ESS via Apple, Google, Nokia - 120