The background
Even Keel Solutions was approached by an accountant within our professional network, to enquire about extracting funds from one of their client’s companies in which the directors, who were also the main shareholders, wanted to retire and enjoy the accrued fruits of their labour.
The company was a property development company and had sold all the assets it held. The only remaining asset it had was the cash in the bank, an amount well over £25K.
What happened next?
The most appropriate option was for the company to go through the process of a
Member Voluntary Liquidation (MVL). Proceeds of the company would be taxed as capital distribution and the shareholders would possibly be entitled to
Business Asset Disposal Relief, which used to be known as Entrepreneurs’ Relief.
The directors were delightful to work with and had obviously enjoyed working together over time. Over the course of a couple of meetings with them we discussed how the process would work and then moved forward to placing the company into liquidation.
The end result
Once the funds were received, an immediate distribution was made of the majority of the funds to the shareholders.
The final amount was paid after working with HMRC and obtaining their confirmation that we were able to close the liquidation.
Dorothy Brown, licensed Insolvency Practitioner at
Even Keel Solutions comments “this was a satisfying piece of work as I was able to experience working in a positive way with directors. The ability to be at the end of the working life of a company and for the individuals involved receiving their just rewards for their hard work. Whether they spent the money on an around the world cruise or sent money to their grandchildren, I’m not sure, but I do know they were looking forward to spending it!”
