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Spanish practices

18 February 2009
Issue: 4194 / Categories: Forum & Feedback , Capital Gains
A writer and lecturer would like to liquidate his cash rich company and retire to Spain, where any work will be carried out in a personal rather than a corporate capacity

My client trades as a limited company (sole director and 100% shareholder) carrying out management consultancy services for a range of corporate clients. He also lectures and writes on business-related subjects. The company is cash rich because of retained profits.

My client would like to withdraw £100 000 from his company and semi-retire to Spain. He would then only carry out writing and lecturing work and no management consultancy.

For tax purposes do readers feel there is scope to dissolve the company and claim ESC C16 procedures so that the entire reserves of the company (£120 000) can be treated as a capital rather than income distribution?

Instead of trading as a company called say Jones Ltd I suggest he would then trade as a sole trader along the lines of Jones (Author and Lecturer). This then creates a clear trading break. If necessary ...

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