The use of a limited company for the delivery of consulting services in the UK has been commonplace over recent years.
Such companies typically have a single share holder, or share holders that are a husband and wife/de facto couple.
Tax planning for such situations is almost always best done prior to arrival in Australia, particularly if the share holders are the holders of Australian permanent residency visas, or are Australian citizens.
The provisions in Australia that deem distributions made by a liquidator upon a winding up of a limited company to be income in the hands of an Australian resident can defeat the usual capital gains tax/Entrepreneurs Relief planning that is frequently undertaken in the UK.
We have seen circumstances when an individual is already in Australia and wants to access funds in a UK limited company tax efficiently. While tax savings can be made in this scenario they are usually not as substantial as can be achieved if planning is undertaken before departure from the UK.
If you have a UK limited company with a healthy bank balance and are moving to Australia don’t leave it too late!
Contact GM Tax now to discuss how we can help you ensure that as much as possible finds its way into your personal bank account.