Entrepreneurs' Relief - another question
I have a client (60 ish) who's about to start divorce proceedings. He wants to gift his company (of which he owns 99% of the shares) to his children (one of whom owns the other 1%) prior to doing so, and get Entrepreneurs' Relief. The main reason for this is to be able to get at the fairly large cash reserves held by the company which he cannot do at present without higher rate tax on dividends.
Not sure whether he can do this, though - if he gifts the shares this will perforce include the cash, which the children will have to give back to him, thereby incurring their own IHT problems, albeit hopefully academic as they're only around 30. And in any event, will they be able to get at the cash any more easily than the client ?
He wants to remain as MD, however, and receive a salary of maybe £60k, biting the NI bullet in doing so as he won't be able to have dividends. As far as I can see, becoming MD won't prevent his getting ER.
Other option might be to just wind up the company, claim ER on the assets, and start another company.
Any comments, anyone ?
- How quickly do you turn around y/e accounts? 2,194 17
- PAYE coding notice - deliberate misstatement 1,326 21
- CIS and Close Company 121 3
- Sage 200 and Access Dimensions reviews 301 1
- VAT Option to tax 470 17
- Brain freeze - loss on disposal of company car 172 6
- Capital allowance vehicle exchange 198 7
- S162 and Capital Allowances 130 2
- Director leaving in month 1 153 2
- Ex Gratia payments 90 1
- HMRC chasing club for unpaid fees 286 3
- Unaudited accounts and an accountant’s certificate of confirmation 171 4
- Selling assets to yourself ? 196 3
- 24 Month Rule - New Employer 190 3
- Director's remuneration accrual 178 4
- IHT - clawback of BPR 55 1
- EIS - connection through employment 96 2
- HMRC Dispensation - How long does it last for? 251 3
- Electronically supplied services - B2B 64 1
- Correct tax & VAT treatment of local overnight expenses 233 4
- Residential Property Purchase Above £750K 911
- Using Sage with Sofa Categories 641
- Free Tax Legislation? 405
- Director Loan account operation 402
- Understanding the implications of January 2015 VAT changes for downloads on threshold for VAT registration 340
- transferring simply accounting 2010 from xp to windows 7 319
- rent-a-room allowance for part of the year 225
- Paye procedures for CVA 221
- HMRC Second Income Campaign - not so much a question as heads up 188
- Pension Fixed Protection 163