• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

MVL, entrepreneur tax relief and dividends

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

  • Maslins
    replied
    Originally posted by SeededLoaf View Post
    Once clearance is received from HMRC to distribute as capital, does the liquidator subtract any of the CGT or is that all paid through self assessment?
    The latter. The liquidator typically won't have anything to do with your personal tax. They're just liquidating the company.

    Originally posted by SeededLoaf View Post
    How soon do you normally find out if you're entitled to the relief after you make a claim?
    You'll need to decide whether you're entitled to it or not, and submit your self assesssment tax return on that basis (remember that's basically what "self assessment" means, you are assessing your own situation). HMRC then have their normal window to enquire. 12 months if you've made full disclosure. 6 years if it's a discovery assessment (eg you didn't declare everything relevant, and they found out something significant from other means). 20 years in situations of fraud.

    Leave a comment:


  • SeededLoaf
    replied
    Once clearance is received from HMRC to distribute as capital, does the liquidator subtract any of the CGT or is that all paid through self assessment?

    How soon do you normally find out if you're entitled to the relief after you make a claim?

    Leave a comment:


  • eazy
    replied
    Distribution Spanning Two Tax Years

    When I closed my company down few years ago, the process started in January, the first CGT distribution was in one tax year and final distribution in the next year, this was not planned.

    I contacted HMRC on how to complete the self assessment, CGT allowance could be used for both years. I claimed both ER & CGT for payments spanning two tax years without any comeback from HMRC.

    Leave a comment:


  • Maslins
    replied
    Originally posted by AnotherGuy View Post
    I read there is a need to get ID certified and sign a declaration in front of solicitor.

    Out of curiosity, is this not a problem now with COVID-19? Anyone having issues with this?
    Perhaps this can be done remotely by video chat?
    The declaration of solvency needs to be witnessed by a solicitor, or commissioner of oaths. Afraid this is a strict legal requirement for the company to enter liquidation, not an arbitrary thing liquidators can be flexible on. It's not something where anyone of professional standing (accountant/teacher/doctor etc) can complete it.

    Yes this is proving a problem during lockdown. Some solicitors are still doing it. We believe either via the low tech method of having a reasonably big room(!) and staying far apart, or by some kind of video system where they can watch you sign it, then get the original to counter sign, then give back.

    There are no hard rules re the ID, so a lot more flexibility on that.

    Leave a comment:


  • Chart Accountancy
    replied
    Originally posted by AnotherGuy View Post
    I read there is a need to get ID certified and sign a declaration in front of solicitor.

    Out of curiosity, is this not a problem now with COVID-19? Anyone having issues with this?
    Perhaps this can be done remotely by video chat?

    Cheers.
    You can post the originals to your accountant to certify (if the accountant is chartered/certified).

    Leave a comment:


  • northernladuk
    replied
    Originally posted by AnotherGuy View Post
    I read there is a need to get ID certified and sign a declaration in front of solicitor.

    Out of curiosity, is this not a problem now with COVID-19? Anyone having issues with this?
    Perhaps this can be done remotely by video chat?

    Cheers.
    Does it have to be a solicitor? Many of these things can also be signed by teacher, police officers and, probably most usefully, at a post office?

    Leave a comment:


  • Scoooby
    replied
    Originally posted by Chart Accountancy View Post
    Capital Gains Tax (CGT) is due on a disposal of qualifying business assets - i.e the liability will arise in the tax year when the qualifying business assets are disposed of. It is not possible to dispose of the same business assets twice and span over the disposal over two tax years to claim the annual exempt amount twice..
    First time I've heard this viewpoint on this. Does anyone agree, especially with first hand experience, that the first and final distributions from a MVL need to be treated as a single event for the purposes of GCT and ER?

    I'm thinking about the possible scenario whereby ER might be scrapped in the next tax year (from say April 2021). If you kicked off an MVL in the next few months and got the first distribution (75% of cash in the business) paid out in the current tax year, but the final one was not paid until after April 2021.

    I'm this situation, would it not be reasonable to assume that you could still apply for ER on at least the first distribution of funds as the rules currently apply in the current tax year?

    I guess the same principle applies with being able to utilise GCT allowances across different tax years in this kind of situation.

    Leave a comment:


  • AnotherGuy
    replied
    I read there is a need to get ID certified and sign a declaration in front of solicitor.

    Out of curiosity, is this not a problem now with COVID-19? Anyone having issues with this?
    Perhaps this can be done remotely by video chat?

    Cheers.

    Leave a comment:


  • ladymuck
    replied
    Originally posted by Chart Accountancy View Post
    Thanks, I have just noticed my comment has been posted multiple times for some reason, I have now deleted the duplicate posts.
    It's a feature of the system

    Leave a comment:


  • Chart Accountancy
    replied
    Originally posted by wattaj View Post
    That Chart Accountancy account is very keen.
    Thanks, I have just noticed my comment has been posted multiple times for some reason, I have now deleted the duplicate posts.
    Last edited by Chart Accountancy; 19 April 2020, 09:05.

    Leave a comment:

Working...
X