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 ?
- Am I the only one who finds this annoying 1,171 41
- Flat Rate VAT 244 8
- Sage Drive Queue.dta file lock out 705 15
- Practice software 1,183 17
- Starting your response in the subject line of the form 310 7
- When to register or not for PAYE 535 11
- Invoicing for monthly clients 492 8
- Seeking advice: With recruitment agencies for temporary placements, is VAT taken off the whole sum received from the client, or just what the company retains? 235 5
- How do you pay Inheritance Tax when HMRC haven't demanded it 569 8
- Redundancy pay 323 9
- Final CT Return - liquidating company 235 2
- VAT on farm machinery sold 262 5
- Servicing AE fees 184 2
- VAT Receipts 275 8
- Changing pay dates on Moneysoft 167 2
- P800 problems again 121 1
- Company accounts for £350 992 27
- Directors Loan Account Question 443 12
- Setting up a Charity Trust?? 157 4
- Seeking advice: Osetting Directors Loan at Startup 238 5
- FRS 101 Software 338
- Motor Traders Assistant Bookkeeping Programme queries 308
- Continuity of practice-ACCA 299
- Tracesmart/Lexis Nexis AML software? Any opinions? 274
- French ConnectionUK 241
- Fundraising for friend - minimise tax? 216
- Can anyone explain Indian Minimum Alternate Tax 204
- Recommended International mobile phone coverage and costs? 202
- APN's 187
- Penalties for late filing of P11D forms 184