Entrepreneurs Relief and Insolvency
Posted on 3 December 2015
Entrepreneurs Relief which is a scheme available to directors who own 5% or more of a company and entitles them to a reduced, 10% tax rate on capital gains up to a lifetime limit of £10m. The relief could save entrepreneurs up to £1.8m of capital gains tax on disposal of £10m shares.
Ahead of the Autumn Statement there had been concerns that Entrepreneurs Relief was set to be scrapped.
What is the relevance of this to insolvency? Well, if you are director looking to restructure a group of companies or perhaps looking to retire then winding your company up through a Members Voluntary Liquidation (MVL) would enable the capital extracted to be subject to Capital Gains Tax (28%) rather than the higher level Income Tax. On top of this saving you may be eligible to Entrepreneurs Relief and the much more attractive 10% rate of tax.
To find out how this could work for you contact our Insolvency Practitioner at our Bristol Office firstname.lastname@example.org.
The range of options Alison comes up with, the respect she shows everyone and the skill with which she deploys it means that insolvency is a less painful process than other people in the industry can deliverPatrick Gore (Hollis Gore Associates)
Subscribe via RSS
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