- Are you retiring from business?
- Do you have a big cash balance in the Company?
- Do you want to extract the cash and pay as little as 10% tax?
Your accountant or tax advisor will let you know whether you qualify for Entrepreneur’s Relief which can potentially reduce the tax on the cash held in your company to as little as 10%. This means that if your company holds a balance of say £1 million the tax you pay on extracting this amount is only £100,000.
To get the benefit of this tax relief your company needs to be put into Member’s Voluntary Liquidation. Once in liquidation, as liquidators of the company we would give the money held by the company back to you as a capital distribution so that it is eligible for the tax relief.
Once instructed, we would prepare all the necessary paperwork to put the company into Members Voluntary Liquidation. All of this can be done within 24 hours.
It is important to note that we do not give tax advice and you need to seek advice from your accountant or tax consultant to ensure that the appropriate tax computations are done and submitted to H M Revenue & Customs.