Retirement Relief restriction ??
A client runs a company in which the shares are owned 50/50 by himself and his ex-wife. In order to realise the value in the company (approx £300K) he needs to wind up the company, and make a capital distribution.
He is 52, his ex-wife 47.
He will claim retirement relief on his gain, as he is effectively retiring from the business.
The commercial reason for his actions is that his wife does not work for the company, and therefore half of all the profit he makes is contributing to his ex-wife's net worth!
This being the case, he intends to recommence trading after the present company is closed down (albeit in a smaller, less stressful and lower powered way), in order that he maintains an income, and keeps his clients happy.
Can anyone suggest whether he may run into problems with his retirement relief, and should he leave a gap between stopping and starting ?
- Is this a scam? 28 1
- C79 Discrepancy 187 1
- Deaf clients 75 2
- Basic PAYE Tools update .... lost all my previous FPSs 68 2
- illegal dividends 180 2
- Self Assessment Tax Return Penalties 42 2
- Work experience - pay 228 2
- reliable alternative to registered ofice required 159 2
- Do I need to report this to SOCA 1,681 18
- Goodwill 147 5
- Dividend received from voluntary arrangement 143 1
- How do I calculate the VAT due (cash basis) on receipts which suffer a cis deduction? 110 2
- SAGE V12 137 3
- Consolidation and Comparatives 67 2
- Ltd Company trading for 2 years not Registered for PAYE 93 1
- first year company tax return for a limited company 455 22
- Not ANOTHER bogus HMRC email? 123 1
- Exactly which business miles can I claim from my employer? 770 13
- One off meeting new client 217 2
- Incorporation Relief 204 5
- Proposed Amendments to IAS 1 611
- Property exchange - 8-year legal delay following fall-out 504
- Sorry ignore me 411
- Accounting for Insurance Premium Financing 372
- SAGE Payroll Data for Import to MS Dynamics AX 284
- Cancelled 267
- Cancelled 229
- Bartercard 199
- Sage Report Designer - Nominal Activity in Currency 170
- Have you staged yet for auto enrolment? 156