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Frost Group and Business Accountant Offer MVL Service

Frost

Frost Group are extremely pleased to be working with CIMA members in practice through their Business Accountant service and sharing with CIMA MiPs our knowledge and experience of Members Voluntary Liquidations.

Jeremy Frost, Insolvency Practitioner and Managing Director of the Frost Group commented:
“Recent developments in the tax regime have caused an increase in the requirement to use Members Liquidations when considering legitimate tax mitigation measures. We believe that CIMA members in practice are better placed than most accountants to recognise and deliver the benefits that will accrue to their clients from this procedure. It makes perfect sense to train them in the process and we are delighted to be able to assist”.

Frost Group are corporate recovery experts, licensed insolvency practitioners and business advisors, and are now in our tenth year of trading. Our continued aim remains to develop partnerships with CIMA members in practice who can benefit from ongoing support and a modern, pragmatic and commercial approach. To learn more about Frost Group, visit our website at http://www.frostbr.co.uk.
Contact Jeremy Frost at the Frost Group on 0845 260 0101. We look forward to working with you.

Why would you liquidate a solvent company?

Balance sheet business diagram

If you have a company which is no longer needed you have the following options:

  1. You can just keep it as a Dormant company
  2. You could strike it off at Companies House
  3. You could carryout a Members Voluntary Liquidation

If the company has assets the shareholders will want to release the assets and get hold of the money, so keeping it Dormant isn’t going to help.

Since March 2012, in the case of Strike Offs, ESC C16 has allowed the distribution of up to £25,000 as a Capital Distribution rather than as Income.

However, if you have assets in excess of £25,000 distributions can only be treated a Capital if the distributions are made through a formal liquidation.

With Entrepreneur’s relief, money paid to shareholders will only be subject to tax at 10% on the capital gain.

There could also be other benefits too.

steve@bicknells.net

 

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