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.
- Company overdue but wants to be struck off 769 32
- VAT Invoice 73 3
- IHT and Swiss Property 104 1
- Sale of house with planning permission - tax free? 175 3
- Flat rate Vat Scheme & Vat on wholesale production of Cakes and other deserts 126 7
- General tax book with planning 99 1
- Gift of property & improvements 77 1
- 2013/14 failure to submit end of year submission 240 10
- Vat code for journal entries of director's expenses 119 2
- Claiming VAT and missing receipts 412 10
- HMRC overreaching its powers -again against a small surveying firm? 341 8
- Help with tax codes on Sage 233 1
- Letting relief on property transferred to a spouse 156 6
- VAT code for invoice from not VAT registered company 249 4
- Accounting for a finance lease 152 4
- SA302's anyone?? 518 16
- A change from the old Q v NQ debate 1,630 41
- Renting for military reasons 176 2
- Cleaners wages at small church -PAYE or self employed ? 1,567 18
- Moneysoft Payroll Windows 8.1 Woes - Help! 1,042 18
- Skandia using wrong address 1,617
- Nil Rate Band Trust - index linked debt by way of charge over property 896
- International interest certificate 509
- NOVA 367
- Have we escaped Gift with Reservation of Benfit & Pre-owned asset charges? - Gift after benefit 288
- Management expenses for investment company 261
- Bonus Bonds 259
- Entertainer withholding tax in Australia 170
- tax on apprenticeship income 166
- P11D benefit received by widow 147