How has Entrepreneurs’ Relief changed? Opus answers the question for Contractor UK
April 11, 2016
The Budget 2016 has made a broad ranging set of changes to the taxation of money taken out of a company as a capital distribution. Opus answers a question raised by an IT contractor on the Contractor UK website.
Q: can I benefit from ER when liquidating my PSC to go permie? Or were the benefits better before April 5th, or are they now non-applicable as it’s after April 5th?
A: Now that the dust has settled after the March 2016 Budget and the full details have been published in the Finance Bill, the optimal course of action before the Budget seems to as optimal post–Budget, because you are closing your company for a genuine business reason, i.e. to stop contracting and go into employment……