ER and MVL in the next few months?

[jamesbrown]

In this case it looks like it is sufficient to leave £12,300 for the next tax year as anything above will be taxed linearly as CGT.

Hm... so why do people say the process can take around 6 months + some are waiting for HMRC decision if the relevant date is that when liquidator transfers the capital distributions?

I think the liquidators typically distribute the first (larger) distribution, then await HMRC approval (which can take 6 months or perhaps even more right now), then distribute the second (smaller) distribution when approval has been obtained. Not exactly sure what happens w/ the first distribution if approval is held-up/not granted for some reason, but I guess that is highly unlikely. In practice, you may have only limited control on when the two distributions are received, particularly the second one. However, insofar as you can control it, there is value in using your CGT allowance in each of two years. All this stuff is best confirmed w/ your liquidator though.

[Jeremy @ Silva Insolvency]

MVL distributions

Once appointed the liquidator will write to all creditors and will advertise for any claims against the company. When the liquidator feels comfortable that funds are available to cover all claims s/he can consider distributing surplus funds to shareholders. (This process can sometimes be accelerated where the shareholders are willing to indemnify the liquidator for any distributions s/he makes.)

There is no reason for a liquidator to hold onto funds s/he doesn't need and normally shareholders want their funds as quickly as possible. Normally the bulk of funds are distributed pretty quickly. We normally hold back some funds until the HMRC clearance comes through just in case something unexpected turns up.

If you want to hold back some distributions to take better advantage of CGT allowances I think you'll find most IPs will work with you on that but it's best to check with the IP beforehand.