Hi, I'd appreciate any advice or links I could follow for more info on this please. I'll be retiring and closing my small ltd company later this year or early 2022 when I get a few loose ends tidied up. I'm planning to emigrate to Cyprus for my old bones and the cheap brandy. I read that entrepreneurs relief could be in danger which worries me a bit as I was banking on getting this on the assets I have left when I wind down the company. Could I move the company to Cyprus and then wind it down, as I believe they have no capital gains tax there...I read something about a "share for share transfer" that can be done? Or would I be stung for some kind of exit tax? Thanks for any replies!
16th Jan 2021
Moving company abroad to avoid capital gains
Can I move a business abroad before winding it up, to avoid capital gains.
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The UK capital gains tax consequences of disposing of shares in a company are affected by where you are resident for tax purposes, not by where the company is so resident.
How the position will be affected by you becoming resident in Cyprus before you dissolve the company is a complex question, and you should take paid for advice on that point, including on what the Cypriot tax consequences for you would be.
That is very helpful John, thank you very much. From the UK tax point of view at least, it may be more straightforward than I thought then. Yes, of course, I would need to take paid advice on the details.
You can move a company from England to Wales, or vice versa, but that's the full extent of your options. Neither of which helps you.
As John says, you need some proper advice, tailored to your circumstances.
Thanks Lion!
A company's tax residence potentially moves to wherever it is managed and controlled if the circumstances and the treaty are right, but there is then a migration charge on any chargeable assets, none of which helps the OP, who just has to move himself for 5+ years.
A point which I suspect the OP has missed with his its 'straightforward' comment
Time now to get an accountant.
The same company on all three questions?
Agree, yes, thank you!
Pre 1.1.21 it's a moot point and depends. See recent similar case here: https://assets.publishing.service.gov.uk/media/5fd8c27bd3bf7f40d000e007/...
Now post Brexit you have no EU law freedoms defence of course.
Genuine question - can you please explain the relevance of that case to the OP's query.