My accountant has advised setting up a limited company in the United Kingdom as I am now making quite a lot from my book publishing, the trouble is he says I will have to sell the rights to the limited company and pay capital gains on the amount I come up with.
I have no idea how to value my book profits – as we all know they could stop anytime but I do make $50,000 a year currently.
He says the taxman will expect to see a value of my portfolio. He says although I will pay capital gains, the company can they pay me back the agreed value tax free as and when the funds are there.
So how much do I make up, $50,000 or a lot more i.e. $100,000?
Should I make the figure high or low (I don’t understand the tax advanatges of either).