Entreprenuers' Relief and cash-rich company

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.

 

Comments
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I've been told

JCresswellTax |
JCresswellTax's picture

Mmmm ...

Euan MacLennan |
Euan MacLennan's picture

Liquidation?

Tony Nabarro |

Liquidation

AndrewSullivan |

Thanks for all the comments.

mail.taxperfect.co.uk |

excerpt from CG64060 -

Marion Hayes |

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

mdoyle |

Also heard that it is not

Carl London |

distribution

pembo |
pembo's picture

your are looking forward

pauljohnston |

I've had 3 similar situations

timwarr |