Sale of small company asset separately or as part of voluntary liquidation 12 September 2022 at 12:56PM in Cutting tax 2 replies 115 views

moneywiser_2023

Will get prof. advice but need to know basics ( have read HMRC website stuff )

Seeking advice on options for closing down /selling a company

Situation : Company has property asset circa 100k, some cash in bank( < 100k )  ,no employees and 5 fagoalmily shareholders

Goal : What is best route to save tax to the shareholders ( all equal shares ) ?

1. company sells assest, pays Tax, money goes to company account, voluntary liquidation

2. Sell company All in ( Shares and Property asser )  to third party

3. Company 'sells/xfers' ( not sure correct terminology - legally to Share holders. So co only has cash in bank, voluntary liquidation.

in the above would timeframes help ? ie 1. liquidation in different tax year?

Thank you inadvance

moneywiser_2023

Nobody want to give some pointers please?

Jeremy535897

1 and 3 will be likely to give the same result, which is corporation tax on the profit realised on the asset disposal, followed by capital gains tax on the liquidation. 2 may be the best. Is the company one whose shares would qualify for BADR? See:
https://www.gov.uk/government/publications/entrepreneurs-relief-hs275-self-assessment-helpsheet/hs275-business-asset-disposal-relief-2021