RemedyCiata
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I've found myself in a pickily situation trying to leave a company, my shock horror when I was informed I may be liable for upto 52% in income tax if I get it wrong 
To give some background;
I'm trying to exit a business due to internal differences between me & the one other director/shareholder. He's offered 325 k sum to buy me out using a company buy back of my shares.
I've of course consulted with an Accountant, who outlined the conditions for Entrepreneur Relief Tax, which I believe I meet, bar a question mark over one condition.
To receive this relief, I'm not to be connected with the company after purchase. That's fine I've no intention of being involved with it. However I do hope to set up my own company, which will be very similar to the one I'm leaving. It'll essentially be competing with the business I'm exiting.
The accountant was a little hesitant on this and from reading through material on it, there doesn't seem to be a definite conclusion. I mean if I was purposely liquidating the company -applying Entrepreneur Relief and then starting afresh, I can see how that would fall foul, but that's not the case here as the business I'm selling my shares from will continue under the sole ownership of the other shareholder / director.
I know advice here is not to be taken as substitute for expert professional advice, but hoping to get maybe some insight before engaging with the accountant again, or perhaps I should be talking to a tax professional rather than an accountant!
To give some background;I'm trying to exit a business due to internal differences between me & the one other director/shareholder. He's offered 325 k sum to buy me out using a company buy back of my shares.
I've of course consulted with an Accountant, who outlined the conditions for Entrepreneur Relief Tax, which I believe I meet, bar a question mark over one condition.
To receive this relief, I'm not to be connected with the company after purchase. That's fine I've no intention of being involved with it. However I do hope to set up my own company, which will be very similar to the one I'm leaving. It'll essentially be competing with the business I'm exiting.
The accountant was a little hesitant on this and from reading through material on it, there doesn't seem to be a definite conclusion. I mean if I was purposely liquidating the company -applying Entrepreneur Relief and then starting afresh, I can see how that would fall foul, but that's not the case here as the business I'm selling my shares from will continue under the sole ownership of the other shareholder / director.
I know advice here is not to be taken as substitute for expert professional advice, but hoping to get maybe some insight before engaging with the accountant again, or perhaps I should be talking to a tax professional rather than an accountant!