MVL Questions - TAX on BADR

[cojak]

As the costs associated with an MVL will vary, is there anywhere on this forum where this subject is addressed, or Liquidator recommendations have been made?

Use this in your chosen browser to find the answer:

'mvl cost site:contractoruk.com/forums/'

[Valkyrie]

As the costs associated with an MVL will vary, is there anywhere on this forum where this subject is addressed, or Liquidator recommendations have been made?

[bcontractor]

My liquidator has used a "distribution in specie", which makes it unnecessary to transfer any funds to them. It is basically a director's loan that is written off at the time the deed of distribution is signed. Because of that, they can offer a cheaper bond too.

[tudou]

No problem. As eek says, you should talk to your potential liquidators and make sure the things they tell you chime with what you're being told here (I assume that's why you asked).

yes, that's exactly the reason, thanks!

[jamesbrown]

Great, thank you for the response, this answered my questions I think.

No problem. As eek says, you should talk to your potential liquidators and make sure the things they tell you chime with what you're being told here (I assume that's why you asked).

[tudou]

I assume you are claiming ER too. Yes, you apply for ER on your next SATR (or each of two SATRs if the distributions spanned two tax years).

Regarding insurance, there is a statutory bond for all solvent liquidations. This insures the capital whilst under the control of the liquidator.

Great, thank you for the response, this answered my questions I think.

[jamesbrown]

I assume you are claiming ER too. Yes, you apply for ER on your next SATR (or each of two SATRs if the distributions spanned two tax years).

Regarding insurance, there is a statutory bond for all solvent liquidations. This insures the capital whilst under the control of the liquidator.

[eek]

Ever thought of ringing up a couple of MVL companies up and asking them those questions.

The bankruptcy one especially may differ as it will depend on how they work.

[tudou]

Hi Guys,

I am preparing exiting the contracting market and close off my ltd company via MVL, currently doing my research and have the following questions which I hope someone here can help me:

1. When I hand over my profit leftover to the liquidator, what protection is there from things like bankruptcy or fraud etc?
2. Post MVL, how do I pay the capital gain tax on BADR? I guess via the tax return next year?

Thanks in advance.