Reply to: MVL company liquidation before Budget next week

[Lance]

Because the idiot is going to remove the tax break as mostly used by middle class tax dodgers in the south of England (his words)

that... combined with Boris spaffing cash up every wall in the North, and the lack of any money in the treasurey coffers....

[GhostofTarbera]

My understanding is that closing your company offers you no "protection" as HMRC can investigate closed companies, and can still take action against peoples who were a director(s) for up to 20 years.

If correct, whats the point of rushing to do an MVL? May aswell leave it dormant incase you dip your toes back in later

Because the idiot is going to remove the tax break as mostly used by middle class tax dodgers in the south of England (his words)


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[northernladuk]

My understanding is that closing your company offers you no "protection" as HMRC can investigate closed companies, and can still take action against peoples who were a director(s) for up to 20 years.

If correct, whats the point of rushing to do an MVL? May aswell leave it dormant incase you dip your toes back in later

You've not been watching the news of the budget have you?

[sira]

My understanding is that closing your company offers you no "protection" as HMRC can investigate closed companies, and can still take action against peoples who were a director(s) for up to 20 years.

If correct, whats the point of rushing to do an MVL? May aswell leave it dormant incase you dip your toes back in later

[Lance]

Well, I think I can start the process before March 11.

given that "starting the process" simply involves the board deciding they want to do it, I'm not sure it really helps....

[Northernlass]

You're taxed on when the ER distribution is made. It's almost entirely unlikely you can start tomorrow, Friday 6th, and have the distribution made before March 11th. You could perhaps get the first distribution in before April 5th, but we don't yet know when the rules come in. Given it's an easy date change on an HMRC system I wouldn't be surprised if the relief ceases to exist from March 11th onwards.

Hi Roger, apologies I meant prior to the budget the new financial year.

Thanks for your help.

[jamesbrown]

If the relief was scrapped, can we still liquidate at 20% CGT? I'm looking at the extra tax thinking that could have been a brand new car and a few holidays. 15% would be more palatable.

Yes, subject to the same TiS anti-avoidance provisions that apply now. Of course, they may increase the CGT rate too.

[SeededLoaf]

In the Telegraph today

"Scrapping tax relief for entrepreneurs
Likelihood: 8/10

The Conservatives said they would review Entrepreneurs Relief in their manifesto, but whether they commit to removing the capital gains tax (CGT) break or opt for further reform following the inquiry remains unclear. The relief allows entrepreneurs to sell their businesses while paying just 10pc in CGT, almost half the rate taxpayers typically pay when selling shares or other business interests."

If the relief was scrapped, can we still liquidate at 20% CGT? I'm looking at the extra tax thinking that could have been a brand new car and a few holidays. 15% would be more palatable.

Does anyone want to buy my business before the 11th March?

[ahspooner]

He should hire some outside-IR35 contractors to help him do stuff fast.


He could let them WFH, that would make them outside, right? Right?

[WordIsBond]

Maslins put up a post the other day saying he is up to his eyeballs with people asking him this and him telling them they cant.

He should hire some outside-IR35 contractors to help him do stuff fast.


He could let them WFH, that would make them outside, right? Right?

[northernladuk]

Maslins put up a post the other day saying he is up to his eyeballs with people asking him this and him telling them they cant.

[rogerfederer]

Hi all,

I am considering liquidation too prior to the budget....

Are we saying that if we look to start the process with Account/MVL now, it is unlikely to be able to be processed prior to the budget on the 6th of March if it does go ahead?

Thanks

You're taxed on when the ER distribution is made. It's almost entirely unlikely you can start tomorrow, Friday 6th, and have the distribution made before March 11th. You could perhaps get the first distribution in before April 5th, but we don't yet know when the rules come in. Given it's an easy date change on an HMRC system I wouldn't be surprised if the relief ceases to exist from March 11th onwards.

[Northernlass]

Hi all,

I am considering liquidation too prior to the budget....

Are we saying that if we look to start the process with Account/MVL now, it is unlikely to be able to be processed prior to the budget on the 6th of March if it does go ahead?

Thanks

[jamesbrown]

Well, I think I can start the process before March 11.

<panto>Oh no you can't!</panto>

[ahspooner]

Hi,

I'm just waiting for first distribution now .If relief is scrapped on 11th March, I think it's unlikely to kick in until April 6th. For me I can live with potentially losing ER on the second distribution, but obviously that wouldn't be ideal.

There are probably people out there who can do it quicker than MVLOnline, but for me it was about getting a quality service, which so far it has been. In addition a lot of their competitors that I spoke to introduced some potential risk into the process, which I didn't want to take on.

Good luck with it all

Unfortunately the process hasnt really started with them as I had to get accountants to do all the necessary work first. They said once that complete they could start. Now all the work is complete I want to start. I will call first thing tomorrow to see if I can speed things up.

What are your thoughts to as to if they scrap the relief on 11 March (very likely) and you are half way through the process?

What step are you in the process?