How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4191
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

Both my wife and I as the only share holders of a ltd

Resolved Question:

Hi,
Both my wife and I as the only share holders of a ltd company have now retired, we are now in the process of applying for MVL via insolvency practitioners. Im aware that we face a 10% tax on the monies held within the company but understand we can claim certain capital gains taxes back for one year. My question is are we liable to the HMRC for any other taxes personal or other wise once this proves has gone through.
All tax payments are up to date regarding the company and no others are owed
Regards
Rick Jenkins
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.

Hello, Rick, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

You are correct in your calculation of the Capital Gains Tax (CGT) rate of 10%. As you are going out of business you benefit from the Entrepreneurs' Relief which limits taxation to a flat rate of 10% as opposed to the normal 10% or 20% or a combination of the two rates depending on the individuals' income including the gain in the tax year of cessation.

I am at a slight loss as to your 'carry back' question. Any losses made in current year and any losses brought forward from previous years may be utilised against current year gains, just make sure you do not waste any of your 11.1K of Annual Exempt Amount (AEA).

By the by, why don't you just sell off the company as a going concern, you can even do it on eBay. It's much simpler than going through the palarver of a winding up, you just take your money out, leave a shell company and you might just get something for it into the bargain.

I do hope that you have found my reply of assistance.

Customer: replied 1 year ago.
Hi thanks for your reply.
The company is a holding company so it worth is nothing as a going concern. We just want to make sure that the monies we will get will not be subject to any more personal tax.
Rick
Expert:  bigduckontax replied 1 year ago.

I wouldn't say that, I negotiated the sale of a similar company for 500 quid for a friend. Buyers are always on the look out for established organisations.

Please be so kind as to rate me before you leave the \just Answer site.

Customer: replied 1 year ago.
OK, Could you just give me an answer regarding the personal tax and would we be likely to any HMRC payments once we receive the monies due.
Expert:  bigduckontax replied 1 year ago.

You will have to declare the capital gain and claim Entrepreneurs' Relief on your self assessment tax returns for the cessation/sale year and pay the appropriate tax as advised by HMRC.

bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 1 year ago.

Thank you for your support.