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Retaining my UK Limited Company-Tax implications?

Retaining my UK Limited Company-Tax implications?

Old Sep 12th 2016, 9:46 am
  #1  
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Default Retaining my UK Limited Company-Tax implications?

All,
I am planning to retain my UK Limited Company (which is not trading since 2 years) as I had moved onto permanent job from Contracting.
Don't want to close it down yet as it will attract Capital gains, plus insolvency costs etc. So taking out very little dividends every year until the pot reduces below the Capital gains and insolvency threshold.
Are there any US tax implications on it. Should i declare this anywhere to IRS and how do I do it? It's not earning any interest. I will be on L1 visa.
thanks,
Barua
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Old Sep 12th 2016, 11:19 am
  #2  
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Default Re: Retaining my UK Limited Company-Tax implications?

Originally Posted by barua View Post
All,
I am planning to retain my UK Limited Company (which is not trading since 2 years) as I had moved onto permanent job from Contracting.
Don't want to close it down yet as it will attract Capital gains, plus insolvency costs etc. So taking out very little dividends every year until the pot reduces below the Capital gains and insolvency threshold.
Are there any US tax implications on it. Should i declare this anywhere to IRS and how do I do it? It's not earning any interest. I will be on L1 visa.
thanks,
Barua
As a US resident you must declare your worldwide income to the IRS. The US will be your primary tax authority. Owning a UK LLC will have US tax consequences. See here.

Tax advice for Americans individuals or businesses coming to the UK, American UK Tax London, UK Contracting In The UK

Also you should think about how you will deal with any UK investments and pensions on your US taxes paying particular attention to PFIC issues and the US/UK tax treaty treatment of pensions.
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Old Sep 12th 2016, 1:36 pm
  #3  
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Default Re: Retaining my UK Limited Company-Tax implications?

Thanks for the advice Nun. I guess to avoid hassles it's best to close my Limited Company.
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