Time may now be running out to wind up or partially exit a business tax efficiently
If you are looking to close a business and extract any accumulated value or dispose of part of your business, you may wish to expedite the process.
New tax legislation (in draft but expected to take effect later this year – possibly from 5 April if not earlier) could mean tax being payable at over 38% rather than 10% in some cases.
In a winding up situation the new rules aim to discourage ‘phoenixing’ and ‘moneyboxing’ i.e. serial businesses and those with substantial cash or investment assets.
Realistically, unless distributions on a winding up are made before the law changes, probably 5 April 2016, there may be adverse tax implications for the shareholders.
The other areas where problems are anticipated are Management Buy Outs or reductions in capital where the current owners retain a stake in the business. For more detail on how the new proposed legislation might affect you and how we can help please contact Cathy Corns 01908 605552 firstname.lastname@example.org
Date: 14th January, 2016
Articles from this Author
20th July, 2017
Uncertain times for winding up transactions
3rd July, 2017
9th June, 2017
27th April, 2017
Government places Making Tax Digital legislation on hold
Contact Business Service Partners
Choose from the drop down menu below to select a Partner to contact.
“Good luck to everyone who has also made it as a finalist, I look forward to awards evening later on in the year”-L… twitter.com/i/web/status/8…
For the latest Mercer & Hole news, visit our LinkedIn page mercer-&-hole