Company Selling Asset for $1 milllion - left with €300k at the end of it?

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flyingfolly

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Hi all. My company is going to be selling an asset (website). I think I've spent around €150k over the past 5 years in creating it. Its going to be sold for around the $1 million mark, and after doing the numbers it seems that this is what the breakdown will be:

30% CGT immediately
Approx 50% tax to take the money out of the company

That would mean $1 million (€855k) goes down to €300k once I've taken the money out.

Is there any way to reduce the CGT? I believe I can offset the costs of creating the asset against the CGT? So €150k can go against the €300k CGT to reduce it?

Would I be better buying off using some of the money to invest into a pension fund rather than withdrawing it?

I'm 33 and the sole owner / director if that helps. I'm going to be talking to an accountant obviously before this is completed, but wanted to have a good idea about the options before I go into it.

Thanks for any help you can provide!
 
You need to get specialist tax advice.

If it was me, I’d be seeking to argue that the company carries on a trade of developing and selling websites; on that basis, the profit would be taxed at 12.5%. Then, subject to meeting the conditions, I might liquidate the company and pay 10% CGT by virtue of Entrepreneur Relief.
 
Gordon Gekko said:
You need to get specialist tax advice.

If it was me, I’d be seeking to argue that the company carries on a trade of developing and selling websites; on that basis, the profit would be taxed at 12.5%. Then, subject to meeting the conditions, I might liquidate the company and pay 10% CGT by virtue of Entrepreneur Relief.
Click to expand...

Thanks, I'm currently in talks with an accountant to provide me with specialist advice on this, but looking for ideas as to potential plans as everyone I talk to seems to have different ideas.

That's an interesting idea thanks. I never really thought of that.
 
What about if the asset was sold for a smaller amount but I was kept on by the company buying it as an advisor to them and in return paid a very large fee? Would this be seen as tax evasion as the company would be making a small profit on the sale, but as a "person", you'd be making a large amount of money as an advisor and avoiding any CGT?
 
Make sure you are using a tax expert not your local accountant who may not have the expertise required here to maximise the gain.

Gordon gekkos advice warrants investigation especially as the co has other websites.
 
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