Discussion
Just been talking to the MD of a small company that do some work for me, he's looking at retiring and wants to speak to someone with regards to his tax position and liabilities.
He has a ltd co which owns the premises which are worth apx 200K. He would like to 'cash' in on as much of the business as possible and reduce his exposure to financial loss in the form of redundancies etc.
His accountant only wants to add up columns 1 and 2.
I suggested remortgaging the building and paying himself from that. This would also reduce any tax due when he transferred the co into his son's name.
He's really like to speak to someone in the know. He's in Kent if your phone numbers stretch that far.
He has a ltd co which owns the premises which are worth apx 200K. He would like to 'cash' in on as much of the business as possible and reduce his exposure to financial loss in the form of redundancies etc.
His accountant only wants to add up columns 1 and 2.
I suggested remortgaging the building and paying himself from that. This would also reduce any tax due when he transferred the co into his son's name.
He's really like to speak to someone in the know. He's in Kent if your phone numbers stretch that far.
Depending on the individual circumstances of the chap and the company, if he sells the shareholding of the company (which owns the property) then he could get 75% Taper relief, which means he'd only pay 10% CGT.
However, if the majority of the company's value is tied up in investments (property in this case), the IR won't play ball! It all comes down to the individual circumstances of the chap and his company.
However, if the majority of the company's value is tied up in investments (property in this case), the IR won't play ball! It all comes down to the individual circumstances of the chap and his company.
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