Reducing superfluous costs with our corporate streamlining services
Where a solvent company is no longer needed, we assist its shareholders with exit planning. This can be extracting the value of your business in a tax-efficient manner or helping corporate groups streamline their structure.
We work closely with our business and corporate tax team to consider whether a members’ voluntary liquidation or strike-off is appropriate. With tax legislation continually changing, it’s important to seek early and up-to-date advice about the tax and other implications of different exit routes available.
Our team helps corporate groups streamline their corporate structure, whether to reduce ongoing administrative costs, close obsolete subsidiaries or assist as part of wider general tax planning.
We also work with contractors operating through personal service companies to consider the best options for winding down. If you’ve recently concluded a contract, are planning to retire soon or are returning to permanent employment, there are various ways to close down your company. It’s important to seek expert advice to determine the best solution for you.
With regular suggestions of wholesale reviews of the capital gains tax regime, budget changes and the prospect of political change, contractors wishing to have their liquidation treated within the existing regime may need to move quickly.
Members’ voluntary liquidation (MVL)
We can assist shareholders with winding down their business ahead of acting as liquidator of the company. We’ll ensure all matters are formally concluded before the company is moved to dissolution.
Advantages of an MVL include:
- Shareholders may benefit from business asset disposal relief,
- Distributions from an MVL are taxed more favourably than dividends,
- Ongoing administrative costs can be extinguished for obsolete subsidiaries,
- Risks are mitigated for company directors and a line drawn in the sand with potential creditor claims.
- A company’s affairs and tax obligations are finalised properly, avoiding unforeseen claims that may arise following a simple strike-off.
- Group liquidations can be scheduled at the same time, reducing the unit cost.
