MVL and speed of capital distribution

[Ret]

I'm looking to emigrate having wound up trading activity on my company. The country I'm moving to taxes all foreign income when you become a tax resident (ie the day you step foot there). This creates a timing problem with the liquidation of my company and when capital is distributed - I was wanting to move ASAP but it sounds like it would be best to wait for the MVL to complete (I'm told 2-3 months). Do all MVL providers require funds to be transferred to their accounts first, or is it possible to have the funds transferred straight to the director initially? I suppose this creates a massive director loan and therefore wouldn't be a starter?

I suppose what I'm really asking is, is there anyway to have the process sped up so I would be deemed to have received the funds before emigrating? Any thoughts or suggestions around this predicament would be appreciated.

Cheers

[Dom at Fox Bartfield]

MVL

Depending on the level of funds in the company, some providers can distribute 80% of funds on day one which may speed things up a little. The process is driven by guidelines on closure as well, which has specific timings for notices to be issued, etc.

Happy to provide the details of the guys we use if you wish? I'm sure @Maslins will be along shortly with his take as well.

[Ret]

Thanks Dom. Day one!? That would be incredible. This is a PSC company I ran so I would have thought it would be pretty straight forward - no money owed (except a little for CT, will be paid when closing accounts are complete).

I would consider moving after 80% has been allocated and paying the extra tax on the last remaining 20% if necessary.

That would be great if you could pass along those guys you have used that can offer this. I was planning to use MVLOnline which I believe @Maslins is affiliated with? Their website suggests payment of funds only after ~30days (once funds have been received from banks).

[Dom at Fox Bartfield]

MVL

Sure, if you speak to Meeta at SFP Group or email [email protected] I'm sure she'll be able to assist.

[Maslins]

Hello, yes thanks for your emails, will reply shortly to you in more detail there.

In practice I think the "pay out funds on day one" brigade are likely to be fine, but we don't feel comfortable with it. Reason being unless they know something very clever we don't, we don't feel it follows proper liquidation protocol.

[craigy1874]

Pay out on day one? Never heard of that - doesn't sound right.

[northernladuk]

Pay out on day one? Never heard of that - doesn't sound right.

Indeed. I know pretty much squat about the MVL process but getting paid out on day one sounds completely wrong. I guess if it went smoothly it might work but should anything go wrong during the process it's gonna be a nightmare surely.

I'd imagine they've got disclaimers the length of your arm.

[Maslins]

Was dashing out earlier hence my brief response.

I would reiterate...from a practical perspective, it's likely these early pay outs will be fine. I'm not trying to spread irrational fear. However, unless these liquidators can do something magic I'm not aware of, I imagine they will be instructing the director to instigate the payment themselves (rather than the liquidator do it), and it will be after the liquidator is legally appointed (as otherwise how can it be a distribution from a liquidation). We feel uncomfortable with this, as legally the director shouldn't have any control or access to the accounts following a liquidator appointment, it's just relying on the fact the bank will be slow to react to the legal changes. Some will say it's with the liquidator's approval so all fine and we're just being overcautious, but it still doesn't sit well for us.

Also, if I have got that wrong, apologies to any liquidators...and I'd be fascinated how you do do it, as it's a pain for us to have to chase some banks!

[northernladuk]

Was dashing out earlier hence my brief response.
!

So you should. Can't be letting those Friday lunchtime porn star martinis go warm on the bar.

[Maslins]

So you should. Can't be letting those Friday lunchtime porn star martinis go warm on the bar.

If only. I'm a "business adviser" for a Young Enterprise group. Am not remotely qualified for it, but they don't seem bothered