I have recently had a Local Compliance Capital Gains Tax check on one of my clients.
Lesley Stalker outlines how the increase in CGT and extension of entrepreneur’s relief are likely to affect small and medium sized business owners and highlights the tax planning opportunities
Client Mr B owns 100% of share capital in Company XYZ LTD. Company is being dissolved and the £100,000 reserves are being distributed as a Capital Distribution.
Mr B is selling the whole share capital of his family trading company to Mr C, and in principle qualifies for the effective CGT rate of 10%.
An individual has 2010-11 income of £30K, and gains arising in the year after budget day, net of any annual exemption and brought forward losses, in the following amounts:
My client (ltd company) are selling goodwill only - their purchaser will walk away rather than buy the company's shares. Company has no other assets.
We have a limited company which provides management consultancy services. Over the last few years we have aggregated a large amount of cash in the business.
Critical decisions need to be taken on tax policy by the new coalition government – and there’s no time to waste, warn accountancy professionals.
Consider a trading company though which an individual (the shareholder in the company) has provided his personal services for a number of years.