Boring Topic Alert…
I have a limited company which is dormant and I want to close down. I will go via the capital gains tax route which has a MVL fee, and then CG tax of 20% on retained profit (all previous liabilities are fully paid to HMRC already).
I know there is also an Entrepreneur Tax which drops the 20% to 10% if I am eligible.
My company was set up about 26 months ago, but for the last 14 months it has been “dormant”. I moved it to dormant as I secured full-time employment and therefore didn’t see to find any new work via my company in this time.
My accountant said a year ago (when I made it dormant) that to qualify for Entrepreneur Relief the company the company would need to remain operational. The response (combined with my question) implied that making the status dormant would mean that I wouldn’t meet the 2 year rule as I had only been operating for 12m at the time.
However the same accountant told me yesterday that I am eligible despite making it dormant.
They have made mistakes in the past with this kind of thing so I want to get another opinion.
Does anyone have any experience of this or know a good accountant whom I could pay for a second opinion?
EDIT - part of it could be me not knowing what “dormant” really means. It might just be something from an accountant fees classification (no income/expense so less work) rather than something that actively impacts the company…
Post edited at 11:09