FURBS winding up
I've been asked to look at the winding up of a FURBS for a client.
The FURBS only asset is cash and he has asked if there are any tax consequences of the wind up and the distribution of the funds to him as sole beneficiary? I think that the payment is tax free, as the contributions into the FURBS were taxed on the way in and the FURBS has always paid tax on it's income and capital gains. HMRC have also said similar when their technical department was queried but obviously won't give any advice.
The client would also like to loan some money from the FURBS now to purchase a new business, which he needs very soon so pre the wind up of the FURBS. Does anyone know if this would be caught by the disguised remuneration rules? It talks about commercial loans but I think this only applies where the normal course of business is money lending.
Presumably we could draw up a simple loan deed to state that the loan would be cancelled upon the wind up of the FURBS to avoid the need for the client to repay the FURBS the loan to only get the funds back.
Does anyone have experience of this?
- Limited Company Contractor renting a house whilst working at a temporary location 79 1
- Income tax on foreign dividends 224 2
- break even point 579 18
- How much to charge? 165 3
- Simple consolidation question 84 2
- Client charged VAT by US supplier 381 10
- Capital Gain? 487 13
- Abandoning accountancy membership in order to operate as a sole trader 986 27
- thinking of starting up - AAT ACCA 151 4
- How does the tax payer dis-apply/disclaim from use of their personal allowance? 401 9
- Client cash balances, on or off-balance sheet for full service brokerage firm 201 3
- Abolish the penalty regime 259 5
- IR 35 deemed payment calc 99 1
- Separating a business into retail and wholesale, with husband and wife as separate owner/managers. 148 4
- IHT Query 221 4
- Old Books for a 'NON' Client 434 2
- BrightPay 690 22
- 3 Days Grace for late FPS's? 238 3
- What are CIS subcontractor clients worth to you ? 455 8
- Gift or Capital Gain? 382 11
- Possible Partnership? 463
- Tax and accounting treatment on long lease granted from freehold 438
- Lunatics in charge of the asylum - Bluestone 427
- Purchase of property freehold - capitalisation of costs 232
- Growing Limited Company concerned about assets if something goes wrong 226
- Clubs and Taxable Income 216
- New Fangled Penalties 212
- Subsistence and hotel expenses 211
- Deferring taxable income until after 5 April 180
- Loans to other companies 167