Liquidate company with +£25k reserves

Liquidate company with +£25k reserves

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...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?

Finally as my client is wholly withdrawing from the business and will not trade in that same business within 2 years then I have been told a claim for entrepreneur's relief may be possible. 
 
Can anyone give me some guidance please?
 

Replies (7)

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By Ruddles
19th Apr 2016 11:58

Are you an insolvency practitioner?

The answer to that question will also be the answer to your first question.

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By johngroganjga
19th Apr 2016 12:02

Why don't you trust the views of the person who has told you this?

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By Annoying Paper Clip
19th Apr 2016 12:27

You seem to be asking a tax question. Have you considered consulting a tax professional?

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By andrew1211
19th Apr 2016 14:58

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.

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Replying to Mr_awol:
By johngroganjga
19th Apr 2016 15:42

ER

andrew1211 wrote:

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.

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By frankfx
19th Apr 2016 23:48

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. 

 

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By Cloudcounter
20th Apr 2016 08:18

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

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