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Act to avoid tax; In Brief.

ENTREPRENEURS who are contemplating closing their companies and distributing money and other assets to shareholders using a members' voluntary liquidation procedure need to act quickly, according to local insolvency practitioner Tony Mitchell of Cranfield Business Recovery.

If proposed legislation changes are enacted, changes to the way distributions to shareholders are treated for tax purposes will mean that after April 6, shareholders could finish up paying as much as 38.1 per cent on the money they receive instead of 10 per cent if they qualify for entrepreneurs relief.

"The government has recognised the tax advantage some individuals are able to achieve by legitimately arranging their affairs in a certain way and are looking to make it more difficult to use the members' voluntary liquidation procedure to achieve such tax savings," said Tony "Business owners still have a very limited window of opportunity to take advantage of the current rules but must act quickly because the capital distributions need to have been made by April 5, and they should therefore speak to their accountants as soon as

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Title Annotation:Business
Publication:Coventry Evening Telegraph (England)
Date:Jan 13, 2016
Words:176
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