Hi, I'm just thinking about your answer, there's a lot of info' to read through, but the central issue seems to be whether the sale of the flat in 2011 was a a significant part of the company's business.
The flat was bought in 1999 for £51.5k and sold in 2011 for £152,954..
The rent In 2011 was £500 per month.
Whilst I was working as a consultant my day rate was between £350 per day and £750 per day.
The company made a profit of £61,812 at the 1st April 2013. the last year it was really active.
How do these figures sound in relation to the 20% maximum which seems to be the norm from my quick reading of the references you sent me?
Sorry I've taken so long to reply, I had to look out the figures.
Hi, we made a personal loan to the company to buy the flat, the proceeds of the sale were used to pay off the loan. Interest was paid on the loan at a reasonable rate i.e. a rate acceptable to HMRC.
The dividend policy throughout the companies life was only to take very low dividends. My wife had a good well paid job and we didn't need the money.
The last 2 years, I've taken dividends to bring my total income up to the 40% threshold, about £8k last tax year. The rest of my income is now from pensions.