Will trading company client be denied ER?

Trading company also owns 100% of a residential property investment company

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Trading company also owns 100% of a residential property investment company.

main trading company makes 80k per annum and has cash reserves of 200k

Property investment company (owned by main trading company) owns 2 residential properties.

Because trading company also owns an investment subsidiary, does this mean that when trading company is liquidated (due to retirement) that ER will be denied on capital distribution of the trading reserves?

Obviously the property company won't qualify for ER, but unsure about whether the shareholder of the trading company Will get ER on the capital distribution when winding the trading company up.

Anyone shed any light?

Replies (5)

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By chicken farmer
10th Oct 2018 12:31

See Sch 7ZA and s. 165A TCGA and CG 64090

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By Ruddles
10th Oct 2018 12:38

Yes no maybe

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Replying to Ruddles:
paddle steamer
By DJKL
10th Oct 2018 12:42

Quote:

Yes no maybe

You need the rest of the lyrics:

"Yes, no, maybe
I don't know
Can you repeat the question?

You're not the boss of me now
You're not the boss of me now
You're not the boss of me now and you're not so big

You're not the boss of me now
You're not the boss of me now
You're not the boss of me now and you're not so big

Life is unfair"

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Galaxian
By Galaxian
10th Oct 2018 14:54

Definitely maybe

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Portia profile image
By Portia Nina Levin
10th Oct 2018 15:23

There's a light over at the Frankenstein place.

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