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Entreprenuers' Relief and cash-rich company

Posted by mail.taxperfect... PM | on Fri, 22/06/2012 - 12:47  1882  11 comments | report

Scenario is a personal service company earns profits say £250K p/a (not in IR35). Director/shareholder only draws £50K p/a.

Over 5 years there is a substantial sum of cash left in the company bank account.

Will ER be available when the company is liquidated in 5 years time, or will its cash-rich status be a problem?

Thanks.

 

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I've been told

JCresswellTax | Fri, 22/06/2012 - 14:02
JCresswellTax's picture

Mmmm ...

Euan MacLennan | Fri, 22/06/2012 - 15:30
Euan MacLennan's picture

Liquidation?

Tony Nabarro | Fri, 22/06/2012 - 16:00

Liquidation

AndrewSullivan | Fri, 22/06/2012 - 16:46

Thanks for all the comments.

mail.taxperfect.co.uk | Fri, 22/06/2012 - 17:46

excerpt from CG64060 -

Marion Hayes | Sat, 23/06/2012 - 16:40

mechanics of how the balance in company is taxed on winding up?

mdoyle | Wed, 27/06/2012 - 11:57

Also heard that it is not

Carl London | Wed, 27/06/2012 - 12:09

distribution

pembo | Wed, 27/06/2012 - 12:12
pembo's picture

your are looking forward

pauljohnston | Wed, 27/06/2012 - 14:10

I've had 3 similar situations

timwarr | Mon, 02/07/2012 - 08:56