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.
- Outsourcing Payroll 63 1
- sage 94 3
- Separate Pay runs for salary and commission 150 4
- Bank Requesting clients' tax residence 1,044 13
- ATT Exam tips and study help 201 4
- NO SUCH THING AS UNQUALIED ACCOUNTANT 107 1
- FBI2 197 3
- Double entry 157 4
- Companies House 133 3
- Small house in garden 140 1
- THE PUBLIC SECTOR SUCKS 129 2
- Clients 917 18
- can a dormant company make an employer pension contribution? 285 12
- Manually amending PAYE Code Number in HMRC Basic PAYE Tools 140 5
- Accountants not providing all required information 270 4
- Director's personal expenses paid by the Company 309 5
- Sage 50 - How do I find the column headings when I export to CSV 128 5
- Is a property owner charging a peppercorn rent to a limited company acceptable 517 11
- Bureau payroll software and Auto Enrolment - which is the best? 169 3
- SAGE winforecast 250 1
- HMRC BENCHMARK EXPENSES 537
- write off loan or loan to equity swap or both 466
- EPS and CIS deductions 327
- Sole trade business in UK, but the owner works from EU 310
- Construction CIS LLP Company 299
- Stamp duty on house transfer between spouses 295
- Tax Investigation - Employee Travel 262
- Overdrawn director account 217
- LIVE: Budget aftermath webinar 204
- Services via intermediaries and new HMRC reporting requirements 199