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Cash withdrawal
Our client of retirement age has a 25% shareholding in a trading company that pays him a small salary and dividends that are limited to restrict income to basic rate tax.
He also has retirement annuity income and a state retirement pension. The company’s profits which generate substantial surplus cash are approximately £300 000 for corporation tax purposes.
In addition our client and the three shareholders of the above company are in a partnership that owns the premises from which the company trades and also generates trading profits from the storage and parking of commercial vehicles. The premises would have a value of approximately £500 000.
The client wishes to remove £250 000 from the two business activities in a tax-efficient manner. How can this be achieved as he does not have a director’s loan account with the company?
Query 17 736 – Suffolk Boy
...Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
