Limited company tax advice

Viks

Hello,

I am in a position whereby i have sold a business and now have cash in the bank. However, it is a limited company and therefore i cannot take it straight out without paying tax twice.

I am buying a property for which i want to use this money. I was going to buy it in the company name to avoid paying tax twice. However, i have been told that as the business is now 2 years old i am eligible for relief which would effectively mean i only pay 10% tax instead of 40%. Firstly, is this the case? If so i was told to liquidate the company (the business is officially 2 years old end of this month). However, if i liquidate the company do i pay tax on the profits of the company first? I did try to look and couldnt find any information online.

To clarify we are talking about £150,000 profit for the year and there are 2 shareholders with 50% each. I could differ the tax if i bought a similar business but dont want to do this.

Any advice or pointing in the right direction would be great!

cash99

There are certainly a number of things that can be done, but you need to act quickly to maintain the taper relief which will disappear in April and be replaced by a more limited form of relief.

With the amount of money you are talking about get some professional help and soon.

Viks

I have asked my accountant. Just awaiting his reply. However, also wanted to double check here as i know some people here may be able to spot something that i havent.