Closed company via MVL and TAAR

[mgrover]

So like everybody, I went perm, closed down company via MVL(but haven't paid the CGT).

Now I want to open another company same field which puts me foul of TAAR.

The amount was 22k. So can I:

Just pump this money into the new company somehow since I don't really need it at hand? The old companies accounts are final.

I know I can pay the 37.5% tax on it and just take my lumps

Or is there another options?

Also I noticed on here

https://www.brooksonone.co.uk/knowle...eneurs-relief/

It said:

"Valid commercial reasons for closing your company such as retirement or moving to a permanent PAYE position, for example, remain unaffected with regards to the Targeted Anti-Avoidance rules."

Does that mean you still fall foul of TAAR if you did for example retire or move to a permanent PAYE position.

thanks for listening to me ramble.

[jamesbrown]

Debatable.

In other words, the closer you are to the two years since your last distribution, the more likely that argument is going to hold weight and the less likely you would be in breach of the TAAR.

If you received your last distribution a few months ago, it's going to look a little bit shammy.

However, you probably made a mistake in doing an MVL for only £22k. You could've struck the company off and took £25k or less, no questions asked, no TAAR. Hey ho, too late now.

[mgrover]

honestly I just didnt whatever accountant told me.

would companies house have record of the MVL? Because I cant seem to find anything about it.

also what do you mean by "your last distribution".

and if HMRC go actually you are foul of TAAR rules, will they just tax me what I would have had to pay?

edit: am beginning to think i didnt MVL, and just an Informal strike off.

[jamesbrown]

honestly I just didnt whatever accountant told me.

would companies house have record of the MVL? Because I cant seem to find anything about it.

also what do you mean by "your last distribution".

and if HMRC go actually you are foul of TAAR rules, will they just tax me what I would have had to pay?

edit: am beginning to think i didnt MVL, and just an Informal strike off.

No, they would not.

An MVL is a formal process whereby you appoint a liquidator. You would know whether you did one, so you probably just filed a DS01 to CH to strike-off the company. Accountants don't always give the best advice, but that would've been the best advice in your case, most likely, so everything is pointing to your not having completed an MVL. Did you just read the acronym somewhere and assume you'd done that?

Anyway, no formal liquidation (MVL), no TAAR.

Yes, if you were subject to the TAAR, then you'd need to pay tax at the appropriate dividend rate (plus potentially penalties and interest), but this would only happen if you were investigated and found to have breached the TAAR. An investigation would be based on your SATR. Anyway, again, sounds like you don't need to worry about the TAAR, in which case you are free to open another company without any concern. Check your paperwork, though, and get your new accountant to double-check too.

[mgrover]

I think that's exactly what happened, DS01 was filed.

It was over a year ago tbh and I thought basically if you closed with under 25k is still counted as mvl and you basically were screwed.

I think I picked up the term when it was presented to me tbh. Ill ring my old accountant to double check.

Cheers

[Lance]

oops.
For under £25k you could have done a voluntary strike off.
That would have saved you the MVL fees, and TAAR would not be applicable....


EDIT: just read the the rest of the thread. Phew....

[mgrover]

rang account, i did not MVL. away we gooo.