There has recently been much speculation about the fate and possible reform of Entrepreneurs’ Relief by the next UK government following the general election.
Entrepreneurs Relief – whereby qualifying asset disposals are taxed at a flat rate of 10% – is often a key driver behind a decision to wind-up a company’s affairs using the Members Voluntary Liquidation procedure.
A Members’ Voluntary Liquidation can provide a tax-efficient method for closing a company and distributing the remaining assets after the payment of all creditors. It is favoured by business owners as once the company ceases to exist, there is no recourse to shareholders or directors.
Given the potential threat to Entrepreneurs’ Relief after the general election on the 7th May, it is vital that business owners who are currently negotiating a sale or corporate exit, try and complete the transaction or distribution as soon as possible.
Moore Stephens is experienced in dealing with exit strategies and our approach is focused on achieving a commercial, cost effective and risk-free outcome for business owners. Crucially, we are able to respond rapidly to an instruction to ensure a timely distribution to shareholders.