I am not a tax expert and would never hold myself out as one. However, what I do know is that returning capital to shareholders via a solvent (Members) Voluntary Liquidation (MVL) has traditionally been the most tax efficient method of doing so, due to the advantageous capital gains rates of tax.
Since 4th July 2024 it has been generally accepted that taxes are likely to increase and the most obvious candidate for this appears to be Capital Gains Tax. This will not affect everyone but will have a direct impact on those whom it does affect. And this includes shareholders wishing to retire or simply extract cash from their businesses.
The good news is, it’s not too late. There is still time to plan for an MVL before the end of October. If you would further information please contact Laura Pickering or Neil Dingley at Moore Recovery on 01782 201120.
