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 ?
- Any chance of winning an Appeal with HRMC for late self assessment charges 173 6
- VAT on Exhibition services 59 1
- Deductible or not ? Working out of hotels /coffee shops 392 6
- FPS responses ... 473 16
- Nominal Codes 243 9
- ACCA CPD verifiable units 94 1
- Any printer recommendations? 93 3
- Charging VAT to a Swedish Company 191 7
- How to handle accidental overpayment into SIPP 210 2
- Valuing Famiy Shareholding 168 3
- HMRC SMP Calculator - does it still exist? 106 2
- Alcohol VAT reclaim 136 1
- HMRC repayment has gone to wrong bank account - quickest way to resolve? 416 6
- RSU and double taxation 181 2
- Capital gains on tax return - attachments 271 8
- Option to Tax 169 3
- Out of date tax returns 194 1
- PPR relief Separation and divorce 108 1
- Estate Agent - Advertising/WIP 185 2
- VAT within EC 167 3
- Sanzar 495
- Digital marketing focus group 393
- Sage troubleshooting for employee who has previously claimed SMP 376
- Sainsbury's mangement 325
- Are commercial mortgage cashbacks subject to Corporation Tax ? 322
- Continuity Agreement 319
- Avanti Accounts 318
- Buyback 283
- Entrepreneurs' relief (ER) for EMI shares 230
- Aggresive sales from Iris 190