A property investment company has sold its only fixed asset and wishes to be wound up via a members voluntary liquidation. The shareholders have been advised to transfer shares to spouses prior to the MVL in order to utilse annual exemptions. Enrepreneurs Relief is not in point as a property investment company but I was wondering if there could be any anti-avoidance on the share transfer either in the liqudation period or prior to. The liquidators duties will be unaffected by the transfer and all creditors paid. Why an ESC C16 was not used rather than a formal liquidation, I am not sure as we are not talking distributable reserves of more than 200k.
Any thoughts on the inter spouse transfers ?
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Absolutely not a problem
But do make sure the liquidation proceeds go into a bank account with the spouse's name on it!