Liquidating limited

28 May

Please note MVLs can be costly in liquidators’ fees given the amounts involved. However this could be less if the liquidation is very straightforward.New rules The proposed new rules particularly concern companies that are ‘phoenixed’, i.company is closed and shortly afterwards a similar company is formed by the same individual doing the same work.The board of directors must hold a board meeting to agree that the company should be placed into administration, and that notices should be sent to shareholders and creditors.The 1963 Companies Act states that ten days notice of the meeting must be given to all creditors.If an individual does decide to close their company then in future they will have to ensure they do not open a similar business for at least two years otherwise they risk the capital distribution being reassessed as income.Friend & Grant have the great mix of being very professional and friendly too.As you can imagine for the right individual the tax savings by having the distribution treated as capital could be significant.

liquidating limited-14

The business is then closed to extract the cash as capital and a new consultancy company set up.

Company Bureau can assist you by advising on your statutory responsibilities and assist in the procedures necessary for the company to be placed in liquidation.

A creditors voluntary liquidation is usually initiated by the company’s directors.

There is an exemption if reserves are less than £25,000 (no formal liquidation is then required).

Care has to be taken however because HMRC can review any dividends that are paid in the last year of operation, and to the extent that they have reduced the final distribution to below the £25,000 limit, the balance may not qualify as a capital distribution.