Sale of Business on Retirement
The senior partner of an accountancy practice in Bristol did a deal with his junior partner to buy him out of the business over 4 years. This left him with a pot of around £750k in his limited company bank account.
If the capital was extracted by way of dividend then the usual rates of tax would have applied.
By instructing Byrne Associates to place the company into an MVL, he will receive his funds as a capital distribution upon which he will be able to offset his CGT allowance over two tax years (ie 1st April and 8th April) and also to claim entrepreneurs relief, thus reducing his rate of tax to more like 10%.
He also has the added insurance against future claims provided by the MVL.
It is essential that businesses and individuals seek early advice as it is often possible to avoid formal insolvency proceedings and implement a recovery plan
25 April 2016
22 March 2016
20 January 2016
- Head Office: Suite 3 Farleigh House, Farleigh Court, Old Weston Road, Flax Bourton, Bristol, BS48 1UR
- Tel: 01275 464 038
Fax: 01275 462 937