The directors of a local company approached BCR when they decided to sell their business and retire. They sought our help to extract the cash and minimal assets (amounting to almost 2 million pounds) in the most tax efficient manner.
BCR recommended placing the company into Members Voluntary Liquidation (“MVL”) with a view to making a capital distribution to the shareholders. This process enables shareholders to wind up a solvent company and extract the surplus assets / cash at a lower tax rate than would normally be applied if treated as income. Entrepreneurs Relief may be available, reducing the personal tax rate down to 10%.
As liquidators, we worked closely with the directors and their personal accountant to ensure that all records were up-to-date and all outstanding debts were settled prior to the closure of the company. In this case we were able to distribute almost 2 million to the shareholders, saving them each £192,000 in personal tax.
“Thank you on behalf of the Directors, and myself, may I take this opportunity to thank you for the way you conducted this liquidation. You guided us through this process with ease and efficiency and made the whole procedure stress free, with enormous gratitude” JD, Co Sec – Shropshire
MVL service you can expect from the team at BCR:
If your business is in trouble - if you are facing creditor debts, HMRC debts, or struggling to meet payroll, then you could be facing liquidation. Can your business be saved? Download our free guide, 'What To Do When You Are Facing Liquidation' now.