MVL question - CGT allowance

[amrhady]

Hi all, I am considering liquidation, would like to clarify something with regards to CGT.

1. Company has two shareholders, with 20% and 80%. Would CGT allowance of ~12k be applicable for both (Given that each shareholder's share value is bigger than allowance.)

2. If distributions end up being made over this financial year 19/20 and the next one 20/21, does that mean that shareholders can claim CGT allowance for both years, so effectively ~24k tax free for each?

Thank you all.

[Maslins]

1. Yes.
2. Yes.

[amrhady]

1. Yes.
2. Yes.

Thank you.

If you don't mind me asking, is there a way to arrange for the distributions to be made over two financial years (Before/After April)? Or would that just be a matter of timing ?

[Maslins]

If you don't mind me asking, is there a way to arrange for the distributions to be made over two financial years (Before/After April)? Or would that just be a matter of timing ?

Generally it will be a matter of timing. Get your company into liquidation within the next month or so, and it's fairly likely.

Liquidators are in charge of when they end the liquidation...so in extreme cases they could theoretically keep the liquidation going for several years to give the client the benefit of multiple years (ie more than 2) worth of annual exemptions. Realistically liquidators won't want to do this, as if nothing else they need to submit formal annual progress updates to Companies House. So it'd be a pain for the liquidator, which in turn they'd charge the client for.