Extracting Wealth from a company

M

Mullsafin

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Hello all

Say for example a company director & single shareholder still had 10,000,000 to extract from their company after maximising the tax efficiencies of corporate pensions and termination payments. Provided the shareholder satisfied the share buyback conditions, would this option be more favourable than voluntary liquidation or are both options net neutral in terms of how much it might cost the shareholder to perform? I believe both options can make use of the CGT reliefs available to them as well. (Retirement and entrepreneurial)

Also they wanted to remain resident and domiciled in Ireland. Didn't move to a tax haven essentially
 
A share buyback from a private company is deemed a distribution and subject to income tax, unless certain strict criteria are met (foremost among which is a "benefit of the trade" test), so it couldn't realistically apply in the circumstances you are describing.
 
BigBoots82 said:
Not to state the obvious but for those kinds of figures you'd be mad not to get professional tax advice to review the position for you and give you options
Click to expand...
That's what I was thinking! For 10 mill, paying a good accountant thousands (probably in the tens of thousands) would save you a lot of money in the long run...instead of looking for free information off the internet.
 
Oh yeah I know! Unfortunately it's not me!
it's just a hypothetical situation that I sometimes think about when i might see a successful entrepreneur
I'm aware it's a loaded question
 
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