This is a theoretical question, but I'm keen to know the answer.
If I start up a company and capitalise it by purchasing shares in the company (i.e. equity investment) then is it possible for me to withdraw my funds in the future without paying tax on the income? e.g. paying out via dividends wont' work as I'll incur tax at my marginal rate. Is it possible instead for the company to "cancel" the shares and return my funds to me (without me paying tax on this).
If I start up a company and capitalise it by purchasing shares in the company (i.e. equity investment) then is it possible for me to withdraw my funds in the future without paying tax on the income? e.g. paying out via dividends wont' work as I'll incur tax at my marginal rate. Is it possible instead for the company to "cancel" the shares and return my funds to me (without me paying tax on this).