The deadline for the consultation period to consider significant tax rate increases for shareholders receiving distributions from Members Voluntary Liquidations (“MVL’s”) in certain circumstances expires on 3 February 2016. It is widely expected that the new legislation will be part of the Finance Act 2016 and to come into effect on 6 April 2016.
We highlighted these proposed changes in our December 2015 bulletin attached, and since then the number of MVL appointments for KRE has increased tenfold. We are in the process of distributing literally £millions in order to beat the 6 April 2016 deadline.
If you have clients considering such steps then please advise them to consider acting sooner rather than later. There are sometimes matters which will affect the timing of distributions and therefore the realistic deadline for placing a company into MVL is the end of February 2016 to enable a distribution pre 6 April 2016.
We are happy to have a free consultation meeting to explore whether an accelerative process could be achieved and advisable. If interested please contact Paul Ellison (07967 471211), Gareth Roberts (07979 706 392) or Rob Keyes (07500 933022) as soon as possible.