First, companies A and C are probably the same company, for tax purposes, and if any tax has been avoided, you should be concerned about that. In particular, note that the associated companies rules were reintroduced on 1 April 2023.
Regarding MVL, the TAAR requires that you not be engaged in the same or a similar trade or activity for two years after the last distribution is made. So, for sure, there is no scenario in which Fred can continue to trade with C and also receive a capital distribution from the MVL of A rather than a dividend distribution. As for company B, it depends, and you will need to talk to a specialist. Frankly, it's unbelievable that you expect to get a solid answer to that here.
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Reply to: MVL whilst director has other companies
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Previously on "MVL whilst director has other companies"
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Originally posted by sojan View PostPlease find below situation for Director 'Fred' who is director of all below companiesSuppose if you are winding down 'Comp A' using MVLCompany SIC Category How long established Comp A Software Consultancy 10 years Comp B Finance Leasing 4 years Comp C Software Consultancy 6 months - Can you do MVL on 'Comp A' if a similar SIC category company is alread active?
- If you do MVL on 'Comp A', do we need to close down 'Comp C' alongside or can Fred trade using 'C' ?
- if you do MVL on 'Comp A', does it affect 'Comp B' ? (as they are two different SIC)
Thanks in advance
See this article for more info: https://www.contractoruk.com/mvl/clo...35_or_not.html
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MVL whilst director has other companies
Please find below situation for Director 'Fred' who is director of all below companiesSuppose if you are winding down 'Comp A' using MVLCompany SIC Category How long established Comp A Software Consultancy 10 years Comp B Finance Leasing 4 years Comp C Software Consultancy 6 months - Can you do MVL on 'Comp A' if a similar SIC category company is alread active?
- If you do MVL on 'Comp A', do we need to close down 'Comp C' alongside or can Fred trade using 'C' ?
- if you do MVL on 'Comp A', does it affect 'Comp B' ? (as they are two different SIC)
Thanks in advance
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