Supporting your clients ahead of the Government’s forthcoming CGT surprise
In the midst of ongoing speculation regarding the Labour party’s stance on Capital Gains Tax (CGT), the dynamic nature of political agendas necessitates vigilance. We understand the anticipation of the October budget is likely to have intensified discussions with clients, centering on succession and exit strategies amidst the prevailing uncertainty.
How can Moorfields Advisory help?
Our expertise lies in guiding business owners through the process of closing their companies via a solvent, Member Voluntary Liquidation (MVL). Under the current tax legislation, distributions made by a Liquidator in an MVL are classified as capital, benefiting most likely for a very limited time, from more favourable tax rates compared to income. This disparity in tax treatment can offer a tax-efficient approach to value extraction, making it an appealing strategy for many, however the possible alignment of CGT rates with income tax will remove this valuable benefit.
Who can benefit from our services?
MVLs are particularly advantageous for business owners contemplating retirement or the sale of their business. They serve as an efficient mechanism to conclude operations of a company established for a specific project that has reached completion. Additionally, MVLs are a popular choice among freelance contractors seeking to dissolve their personal service companies.
What sets Moorfields Advisory apart from others?
While the MVL process can appear straightforward, it often involves complex considerations. Professional advice is paramount to navigate these intricacies successfully. At Moorfields, we specialise in MVLs, providing comprehensive support to accountants and their clients. Our goal is to ensure the most favourable outcome, leveraging our deep understanding of MVL intricacies to facilitate a smooth and efficient liquidation process.
We would encourage you to plan ahead for the 30 October budget so that client strategies can be set and implemented in good time.
For further information contact us now on 0207 186 1144 or email info@moorfieldscr.com
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