MVL and ER after new HMRC policy

[Pegasus]

I don't think it works in the way you suggest. There is no advanced application for ER.

If you put the company into liquidation, the liquidator will distribute funds to the shareholders. These will be taxable on the shareholders as capital gains, unless the above discussed anti avoidance legislation bits, in which case they'd be taxed as dividends.

Assuming they are taxed as CGT (ie don't fall foul of anti avoidance rules), then independently of that, the shareholders/accountant should assess whether the shareholder/company meets the criteria for entrepreneurs relief. For most contractor type businesses they should, providing the company was trading at least one year.

Thanks Maslins. Lets assume we don't fall foul of anti avoidance rules, and are eligible to be taxed as CGT.
Within this case, if for some reason the entrepreneurs relief criteria is not met, then what is the CGT rate that will be applied?

Many thanks.

[Maslins]

Thanks Maslins. Lets assume we don't fall foul of anti avoidance rules, and are eligible to be taxed as CGT.
Within this case, if for some reason the entrepreneurs relief criteria is not met, then what is the CGT rate that will be applied?

Many thanks.

Will depend on your personal situation. See here and/or discuss with your accountant.