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Where Taxpayers and Advisers Meet

Selling website in my personal name, but part of a Ltd company

Jamesb3
Posts: 2
Joined: Thu Jan 31, 2019 12:47 pm

Selling website in my personal name, but part of a Ltd company

Postby Jamesb3 » Thu Jan 31, 2019 1:06 pm

Good day all,

Please ignore/help my total lack of knowledge on this matter. I own one third of a Ltd company. We (myself and two other directors) are selling a monetised website (that the business uses) including its domain, content etc. The website and domain were set up prior to Ltd business being set up. Therefore, the website including its content, and domain, are all registered in my name. Once the website is sold, we have no desire to keep the Ltd company open and would like to close it.

Previous threads provide info on this...
https://www.taxationweb.co.uk/forum/viewtopic.php?f=3&t=38448&p=143208&hilit=disposal+of+website#p143208

My questions are;

1. Do we qualify for ER? If not, which category do this scenario fall under?
2. What is the most efficient way of closing the Ltd Company in this circumstance?
3. Any other information/ guidance on this matter as I'm scratching my head...

Thanks in advance, any help is much appreciated.

James

pawncob
Posts: 4320
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: Selling website in my personal name, but part of a Ltd company

Postby pawncob » Fri Feb 01, 2019 1:14 pm

Both you and the LTD are disposing of assets, so firstly determine the split. The LTD may make a taxable gain, which must be dealt with before it is closed down. Once that is done the LTD can be liquidated/struck depending on the assets owned. Assuming you qualify for ER.............
Yes you're entitled to ER.
https://www.gov.uk/entrepreneurs-relief
With a pinch of salt take what I say, but don't exceed your RDA

Jamesb3
Posts: 2
Joined: Thu Jan 31, 2019 12:47 pm

Re: Selling website in my personal name, but part of a Ltd company

Postby Jamesb3 » Fri Feb 01, 2019 1:40 pm

Thanks for your reply.

I have a meeting with an accountant next week to discuss it, but it's best I go prepared with some kind of direction.

To finalise, my final thoughts/ questions would be..

1. So, basically, we're able to split it between the company and myself (in the most efficient way possible, whether it be 50/50, 90/10 or 40/60 etc etc)?
2. How are the funds received from the sale of the asset treated;
a) From The Ltd business to myself
b) Money I receive personally from the sale

Thanks in advance

pawncob
Posts: 4320
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: Selling website in my personal name, but part of a Ltd company

Postby pawncob » Fri Feb 01, 2019 4:40 pm

Assuming you own the website/domain (sole)you get all the sale funds from that and the LTD gets the sale proceeds from the sale of content. (Again assuming that it owns the content).
The company can distribute the sale proceeds to the shareholders as dividend, capital distribution or on liquidation depending upon the tax position of each shareholder.
Depending upon how the distribution is made, you'll pay tax on it as income or a capital gain. You'll pay CGT on your sale.
With a pinch of salt take what I say, but don't exceed your RDA


Return to “Capital Gains Tax, CGT”

cron