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Entrepreneur Relief

  • 16-09-2019 12:14pm
    #1
    Da11
    Registered Users, Registered Users 2 Posts: 61 ✭✭


    Hey All,

    I have a question about the Entrepreneur relief and I wonder If somebody could shed some light here.
    If I liquidate my company and avail of Entrepreneur Relief ( meet all the criteria) - could I start the same trade company straight away?

    I am asking because let's say I need to use the accumulated cash in the company and I think most tax efficient way for doing this would be paying 10% CGT.

    Thanks in advance


Comments

  • #2
    ThumbTaxed
    Registered Users, Registered Users 2 Posts: 377 ✭✭ThumbTaxed


    Da11 wrote: »
    Hey All,

    I have a question about the Entrepreneur relief and I wonder If somebody could shed some light here.
    If I liquidate my company and avail of Entrepreneur Relief ( meet all the criteria) - could I start the same trade company straight away?

    I am asking because let's say I need to use the accumulated cash in the company and I think most tax efficient way for doing this would be paying 10% CGT.

    Thanks in advance

    Do you complain about lack of services while equally try to avoid tax? Genuine question.


  • #3
    boring accountant
    Registered Users, Registered Users 2 Posts: 335 ✭✭boring accountant


    No you can't.

    The legislation requires that the disposal (winding up/sale) be for bona fide commercial reasons.

    Revenue are unlikely to believe you had a bona fide commercial reason to liquidate a company and then start an identical one right away regardless of what story you tell.


  • #4
    Da11
    Registered Users, Registered Users 2 Posts: 61 ✭✭Da11


    boring accountant wrote: »
    No you can't.

    The legislation requires that the disposal (winding up/sale) be for bona fide commercial reasons.

    Revenue are unlikely to believe you had a bona fide commercial reason to liquidate a company and then start an identical one right away regardless of what story you tell.

    Thank you for the explanation as I wasn't sure and thought this relief was given as a tax efficient way for entrepreneurs to take out the money accumulated in the company, my bad


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