...I am aware that he can take these reserves as dividends but this will of course create personal tax implications.
I have been told that he can appoint a professional to formally liquidate the company to achieve capital treatment. Is this something that we can do?
Replies (7)
Please login or register to join the discussion.
Are you an insolvency practitioner?
The answer to that question will also be the answer to your first question.
Costs
Yes you are right, but the costs of liquidation can be high hence you need to be a fair way over £25k to probably make it worthwhile overall.
ER
Yes you are right, but the costs of liquidation can be high hence you need to be a fair way over £25k to probably make it worthwhile overall.
I am sure Andrew means that you are right about the tax treatment of the liquidation distribution, which I don't disagree with, but no-one can help you with the ER question because you don't tell us whether you meet the conditions. All you tell us, in effect, is that if you meet the conditions you won't fall foul of the new bed and breakfasting provisions.
Modest fees
The new legislation is an inconvenience and costly too.
Of late I have used Purnells .
Www.purnells.co.uk
Telephone guidance is willingly provided.
Fees are competitive, in my view. And saves me time explaining to clients the woes of thoughtless legislation, when and if external costs are seen as extortionate!
I am a sole practioner in Kent and have no association with the company.
MVL online
MVL Online is a member of this forum and offers simple liquidations for a very reasobable fee - much less than other IPs that we have. £995 ex VAT plus disbursements