wind up a solvent Limited company (no creditors) that has property & cash, to myself

[barttarb]

I want to wind up a solvent Limited company that has a property and cash and transfer all assets to me personally.

The company has no creditors

I own the ltd. comapny 100%
What taxes , charges etc do I have to pay

 

[Brendan Burgess]

Re: wind up a solvent Limited company (no creditors) that has property & cash, to mys

You need specialist tax advice before you do this.

The company will pay Capital Gains Tax on any increase in the price of the property.

I don't think you will pay any stamp duty on the transfer of the property to you, but I am not sure.

You will pay CGT on any increase in the value of the company since you bought it or set it up. So if you set it up as a €2 company, the entire proceeds will be subject to CGT at 20%

But it's essential to get tax advice.

 

[barttarb]

Re: wind up a solvent Limited company (no creditors) that has property & cash, to mys

Yes, I realise I will need tax advice , but am looking for some initial info.
I thought I heard somewhere that I may be caught twice for either Stamp duty or CGT
i.e.

1.
if I liquidate the comapny, is there an 'assumed' sale to me here personally of the Property and I pay CGT on this transfer, and possibly Stamp duty

2. When I distribute the assets to myself,there is another transfer to myself of the 'Value' of the company, which now includes the Property ?


Also, this building was purchased c 5 years ago, If the value has now in fact gone down , whcih seems to be happening all over the place, can I offset the loss in the value of the property now against the CGT on the transfer of the retained Cash in the company

say details as follows:
Cash in Company: 300,000
Property : 150,000 (Purchased at 250,000)

Assets of company:

 

[Brendan Burgess]

Re: wind up a solvent Limited company (no creditors) that has property & cash, to mys

The company is treated separately from you personally.

If the company has made a Capital Loss, it will only be able to write this loss against other capital gains made by the company.

When the company is wound up, it will distribute assets of 450,000 to you. If you set up the company without share capital, then the gain will be 450,000. It's the exact same as if you sold the company for €450,000.

You get hit for double CGT if you buy a property through a company. The company pays it and you pay it when you get the proceeds.

I don't know if you have to pay stamp duty on the distribution of the property to you personally.

Brendan