11th November 2019

The past 12 months have been a record breaking year for KRE both in terms of the number of solvent winding up cases we dealt with and the amount of funds we distributed to shareholders.
Some statistics for you:

  • 49 new appointments in the 12 month period;
  • £38 million funds distributed;
  • 151 individual shareholders

Led by partner Gareth Roberts and Senior Manager Lee Lloyd (who we consider to be one of, if not the, leading practitioners in this area of work in the Thames Valley), we believe that part of the reason for this level of work is the quality of service we provide  and the value for money we offer, but we also think that business owners are becoming increasingly aware that HMRC is slowly but surely closing down what they see as the tax advantage “loopholes” of the Members Voluntary Liquidation process such as;

  • Interest being charged on unpaid Corporation Tax from the date of liquidation (even if not yet due);
  • Possible disadvantageous treatment on overdrawn directors loan accounts;
  • Restrictions on “moneyboxing” and “phoenixism”

 Whilst there is nothing to suggest that further clampdowns are on the agenda, it is clear that HMRC is keeping this procedure under close review, so business owners sitting on cash reserves in a company where trading is either complete or about to be completed might want to consider implementing a solvent winding up sooner rather than later as a means of distributing the funds tax efficiently to shareholders. We always seek to work with the company’s existing accountants and tax advisors in planning and preparing for an efficient winding up process.
If you or your client would like to discuss a particular situation in more detail, we would be pleased to meet on an informal, no commitment basis.
For further info call Gareth or Lee or any of your usual contacts on the numbers below;
Gareth Roberts                    07979 706 392
Lee Lloyd                             07773 346 057
Robert Keyes                       07500 933 022
Paul Ellison                          07967 471 211
David Taylor                         07855 231 103
For any further information on our services please do not hesitate to give one of us a call.