Can I appoint a liquidator and use CGT for 2020/2021

[Pmidas]

Zero chance that is going to happen that quickly even if it's possible.

well you guys are the ones with all the experience here.... :-) i might have been quite optimistic then... Worse thing is i am an accountant but have never worked on any accountancy stuff.

[northernladuk]

Thanks... Sorry if i wasn't clear, That is what i meant to get two years CGT allowances. if the liquidator gets appointed next week, lets say Tuesday, could i pay myself the £12,300 Thursday for example so i can claim the CGT for this year ? and then next year when all the rest gets distributed use next years allowance.....
or i do wait a few more weeks and do it without any rush but i will only get 2021/2022 allowance ?

Zero chance that is going to happen that quickly even if it's possible.

[jamesbrown]

Thanks... Sorry if i wasn't clear, That is what i meant to get two years CGT allowances. if the liquidator gets appointed next week, lets say Tuesday, could i pay myself the £12,300 Thursday for example so i can claim the CGT for this year ? and then next year when all the rest gets distributed use next years allowance.....
or i do wait a few more weeks and do it without any rush but i will only get 2021/2022 allowance ?

You’ll have to speak with your liquidator but I’m skeptical because they are officially in charge of your assets to liquidate once appointed and it’s doubtful they could move that quickly. But no one here can answer that question for you, only your liquidator. What you cannot do is simply pay yourself independently from the formal liquidation process, because that will be treated as a dividend.

[Pmidas]

You apply for ER via your SATR. If you have two distributions (which is common with an MVL) and they fall in separate tax years (less common, unless engineered), then you’ll get two CGT allowances.

Thanks... Sorry if i wasn't clear, That is what i meant to get two years CGT allowances. if the liquidator gets appointed next week, lets say Tuesday, could i pay myself the £12,300 Thursday for example so i can claim the CGT for this year ? and then next year when all the rest gets distributed use next years allowance.....
or i do wait a few more weeks and do it without any rush but i will only get 2021/2022 allowance ?

[Lance]

You apply for ER via your SATR. If you have two distributions (which is common with an MVL) and they fall in separate tax years (less common, unless engineered), then you’ll get two CGT allowances.

I knew about the first part.
I wasn't aware that an MVL could result in two distribution dates. Thanks.

[jamesbrown]

I'm not sure you can do that with a liquidation though. That's a one off.
You could sell shares to get a distribution, then liquidate the next tax year. But who's gonna buy the shares? Actually, I'll buy them for 75p in the £ As long as I can have 51%

You apply for ER via your SATR. If you have two distributions (which is common with an MVL) and they fall in separate tax years (less common, unless engineered), then you’ll get two CGT allowances.

[Lance]

Yeah, it doesn’t make much sense. The OP could potentially distribute over two years, but their lack of understanding doesn’t suggest they had that in mind.

I'm not sure you can do that with a liquidation though. That's a one off.
You could sell shares to get a distribution, then liquidate the next tax year. But who's gonna buy the shares? Actually, I'll buy them for 75p in the £ As long as I can have 51%

[jamesbrown]

but..... why the rush?
Next years CGT allowance is also £12,300. You question makes no sense to me.

Oh. have a for thinning out the herd

Yeah, it doesn’t make much sense. The OP could potentially distribute over two years, but their lack of understanding doesn’t suggest they had that in mind.

[Lance]

Hey you wise people. Don't be too hard on me please.
Could I appoint a liquidator before the 6th April 2021? To use the CGT free allowance of £12.300 for this year.

Is for the year you appoint the liquidator that you can cLaim or when you actually go into liquidation?

I am ceasing trading this weekend and I could have a draft of my accounts pretty soon.
Almost all of the MVL companies I came across don’t seem to be willing to do it until you have all your CT/VAT/PAYE paid and de registered, etc. I suppose they want to minimise any risk.

my accountant keeps telling me that I could easily do the declaration of solvency using the numbers I have from FreeAgent as all I need is an estimated, do the swear by a solicitor and appoint the liquidator before the end of last week. I have no physical assets apart from cash.
But I don’t want to rush all this if it i am not going to be able to claim the CGT free allowance of £12.300

but..... why the rush?
Next years CGT allowance is also £12,300. You question makes no sense to me.

Oh. have a for thinning out the herd

[jamesbrown]

Neither. The distribution(s) are taxable when you receive them and it’s highly unlikely that you could receive one before April 6.

[Pmidas]

Hey you wise people. Don't be too hard on me please.
Could I appoint a liquidator before the 6th April 2021? To use the CGT free allowance of £12.300 for this year.

Is for the year you appoint the liquidator that you can cLaim or when you actually go into liquidation?

I am ceasing trading this weekend and I could have a draft of my accounts pretty soon.
Almost all of the MVL companies I came across don’t seem to be willing to do it until you have all your CT/VAT/PAYE paid and de registered, etc. I suppose they want to minimise any risk.

my accountant keeps telling me that I could easily do the declaration of solvency using the numbers I have from FreeAgent as all I need is an estimated, do the swear by a solicitor and appoint the liquidator before the end of last week. I have no physical assets apart from cash.
But I don’t want to rush all this if it i am not going to be able to claim the CGT free allowance of £12.300