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 ?
- Companies House late filing penalties 2,496 82
- What exchange rates are used when buying and selling shares in a section 104? 75 1
- White van man 645 22
- Might income tax be payable on these gifts? 208 3
- Director remuneration £1000 only in year. paye registration required? 155 1
- Mortgage Repayment Sale of Property 209 5
- Backdate C79? 241 5
- Losses B/F and Class 4 NIC 224 3
- Taxcalc , the hub of the problem 900 33
- Software 378 9
- Company dividends 442 13
- Tax return filed on time but payment late 446 7
- Tax Relief on Bridging Loan 125 2
- Use of home deduction 553 15
- Copy Wanted 699 3
- Non resident income. 255 12
- Self Assessment University Superannuation Scheme 108 1
- 11pm and having a blonde moment 236 2
- Pounds Shillings and Pence 569 21
- SA late payment penalty 207 3
- Form MR01 (Particulars of a charge) - does this need to be filed if you remortgage with the same lender? 860
- Underpaid VAT assessment and relation to SATR 552
- Did you realise Google will not patch android exploit ... 517
- Latest phishing scam 410
- Entrepreneurs' relief 380
- Supply teachers and Ltd Companies 340
- Cashback for opening business bank acct = trading income? 322
- Corporate LLP with 30 June Year end - How to record on SA800? 307
- Auto Enrolment Questions Answered 217
- Penalties- On Tax Returns (New Regime) 194