If a company accumulates cash, can the owner liquidate the company and assuming it's solvent, take the cash (net assets) and pay tax at the capital gains rate rather than personal tax rate?
Is there any anti avoidance or restrictions around this as it seems like a way to extract cash from a company at a lower rate of tax given that CGT is lower than marginal rate of income tax.
Any other tax issues to consider on liquidating a solvent company?
Is there any anti avoidance or restrictions around this as it seems like a way to extract cash from a company at a lower rate of tax given that CGT is lower than marginal rate of income tax.
Any other tax issues to consider on liquidating a solvent company?