joey99 started this topic @ 16:33 on 25/07/2007
I currently have a limited company (over 2 years old) in which I own 100% of the shares. The company is trading so I believe if I were to dissolve it and release the capital gain I would be entitled to taper relief reducing the gain to 25%.
Is this correct?
Are there any restrictions on me setting up companies in the future and using taper relief again when I sell / dissolve them?
RE: Taper Relief
James Smith | 25/07/2007 04:56 PM
Joey,
Your understanding is basically sound however as ever with limited companies there are plenty of ways of making a mess of the utilisation of this allowance so please make sure you sit down with your accountant well before any winding up is initiated to ensure you go through all the hoops and dot the i's and not the t's! Quite easy to only get a partial allowance on this if you make a mess of it.
Regarding the second part of your question you cant run the same trade through a string if companies that are closed down every 2 years and reopened but there is nothing to stop you using this relief (or tax dodge as it was called a few weeks ago by both the ill informed press and parliament which beggars belief) over several ventures. Again your accountant will help you in detail with this as it is a complex area.
Regards,
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James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773
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