Retirement relief when closing a family business

[VeronicaA]

Any advice will be appreciated. We are a few years away from this yet and I will get professional Tax advice nearer the time but my accountant said that when we close our Limited company - we own all the shares as a couple, we could claim retirement relief.
We should qualify as we will both be over 55 and work full time in the company more than 10 years. There is 150k cash in the company right now but I'm wondering for the next 2 / 3 years should we just keep as much in the company as possible - pay the 12.5% CT and not add to pension. It's my understanding we could draw it out then tax free rather than taking money out through wages and pension contributions now. Am I understanding this correctly?

 

[T McGibney]

Previously answered here https://askaboutmoney.com/threads/proprietary-director-pension-vs-retirement-relief.234770/

You'll really need specialist advice on this based on your circumstances and those of your company.

 

[VeronicaA]

Thanks for that T McGibney, I had not spotted the other thread. It sounds like the cash does not qualify as a buiness asset.
I sort of thought I had got professional advice from my accountant but I guess they are not specialists.

 

[T McGibney]

It sounds like the cash does not qualify as a buiness asset.

It depends on the circumstances but it's generally problematic.

I sort of thought I had got professional advice from my accountant but I guess they are not specialists.

It isn't really specialist knowledge though.