During these uncertain and worrying times, there may be many business owners who are contemplating their future and whether they are able to continue to trade at the same volume and profitability they experienced prior to the COVID-19 restrictions.
Some of these business owners will be contemplating the most effective means of winding up the affairs of their company solvently and distributing the company’s assets to shareholders in a tax efficient manner and they may be aware of the recent restriction in the Budget of March 2020 of the
lifetime allowance for Entrepreneur’s Relief, down from £10million to £1 million.
But this still remains a valuable allowance although we think the Government could be considering further restrictions (eg increase in tax rate, minimum level and/or length of shareholding etc) to fund the various financial assistance schemes it has announced recently; there was very little criticism of the recent Budget changes to Entrepreneur’s Relief and we are sure that given the extraordinary circumstances in which the country finds itself, there would be very little criticism of further changes.
So we encourage business owners to think hard about the potential merits of progressing the closure and solvent liquidation of their company ahead of any further changes. As always, we would be pleased to have an informal chat with you and/or any of your clients who might be in this situation. We consider ourselves to be market leaders in the Thames Valley in this area of work and we set out below some statistics detailing the solvent work we have done in the past 12 months: –
Number of appointments – 52
Total number of solvent liquidations closed during the same period – 42
Percentage of solvent liquidations closed within the first six months of appointment – 71%
Amount distributed to shareholders – £52m
Number of shareholders – 139
Please feel free to call any of the team members below to discuss this or any of the other services we provide. Or visit our website for further information www.krecr.co.uk
Gareth Roberts 07979 706 392 / firstname.lastname@example.org
Lee Lloyd 0777 334 6057 / email@example.com
Paul Ellison 07967 471211 / firstname.lastname@example.org
Robert Keyes 07500 933 022 / email@example.com
David Taylor 07855 231 103 / firstname.lastname@example.org