Liquidating investment

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If you are just moving your account to another custodian like Schwab, E-Trade, TD Ameritrade, etc...

you can transfer the account with all of your investment as they are at Fidelity without the need to sell the investments.

Notice also that the saving does not entirely depend on using Jane’s lower rates and exemptions – Steve, who pays higher rate tax on all his gains and income, saves £48,980 by taking a dividend.

Essentially, it all depends on the rate of CGT that the shareholders will pay on their gains if the company is liquidated.

Time and time again Tax Insider has come up with the goods!

I wholeheartedly recommend the ‘Tax Insider’ to anyone who is interested in legitimately minimising their tax bill.

· Finally, the company applies to the Registrar of Companies to be “struck off” the Register of Companies.

Once the Registrar has done this the company is dead – though, like Dracula, it can sometimes be revived if unforseen liabilities appear.

There are two ways a company can be liquidated – the formal and the informal way.A formal liquidation must be done by a specialised accountant called a “licensed insolvency practitioner”.It tends to be expensive (not least because in some circumstances a licensed insolvency practitioner can become personally liable to the company’s creditors if he gets things wrong!If you transfer your investments without selling them there will not be a tax issue. The only time a tax issue is created is when you sell all of your investment and transfer the cash. If this is an IRA account there is not a tax issu... If you keep the investments the same or it is in a qualified plan there should be no tax issues until you sell any of your current holdings.I would personally advise against most target date or fixed date funds.

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