An MVL can often enable shareholders to withdraw the retained profits from their solvent companies in an extremely tax efficient manner. We are able to offer an extremely competitive fixed price to assist with this process.
Until March 2012 Extra-Statutory Concession C16 – ESC 16, a concession granted by HM Revenue & Customs, allowed shareholders to close their Company and withdraw funds as a capital receipt rather than a dividend. The funds received were then subject to Capital Gains Tax rather than income tax, thus reducing the tax liability falling upon the shareholders.
From 1 March 2012 this Extra-Statutory Concessions Order 2012 took effect and this option is no longer available.
However, should the Company be closed via the Members Voluntary Liquidation – MVL route, there is often no such limit to the funds that can be withdrawn as a capital receipt.
A Licensed Insolvency Practitioner, such as Steve Ford of S P Ford & Co, is required to act as Liquidator if the MVL option is selected.
We understand that it is also possible that the withdrawal will qualify for Entrepreneurs’ Relief which would again reduce the tax burden. However we are not tax advisers and would always recommend that any potential client take appropriate advice from an expert in that field before making any decision as to the best way to proceed
If you wish to discuss this option further, and to obtain a free quote, please do not hesitate to call us on 0800 002 9927 or visit our contact page.