Keep that surplus in your pocket and not the tax man’s!

Now is the time for shareholders of companies with sizeable reserves to think about tax efficient restructuring to maximise the value of funds in shareholders hands. Solvent Member’s Voluntary Liquidation is an orderly and very tax efficient way of releasing funds and assets accumulated over the life of a company.

This is because where surplus funds or assets are distributed as part of a Member’s Voluntary Liquidation the shareholders are taxed at capital gains tax rates. From April 2010 this can mean the difference between paying tax at 50% or as little as 10% if Entrepreneur’s Relief applies – see Ian’s article on page 4 for more information.

Where the company owns significant property or assets then these can also be distributed in specie which may have stamp duty advantages too.

If you are looking to extract value from your company in a tax efficient manner, reorganise a business in the event of shareholder dispute or matrimonial breakdown or even separate out certain trades or assets into a more efficient structure then a solvent liquidation may be the tax efficient solution you need.

Contact Diane Hill on 0161 245 1000 to discuss how to make this opportunity work for you.