Entrepreneur Relief

[lawfra]

Hi,
I have recently wound up my one man limited company by Members Voluntary Liquidation with my shares being cancelled and capital distribution made in the course of winding up. I am intending to apply for Entrepreneurs relief using the HMRC Section 169M TCGA 1992 form. I need to know what should I be stating with respect to "Description of Asset". As the liquidation process did not involve the sale of shares do I still put down "shares" in the description?

[wamstax]

I would suggest Distribution in a winding up

[lawfra]

Hi Wamstax, thanks for your reply. By stating "distribution" in the description of asset do I need to explain further in the Notes section?

[lawfra]

Hi,
I've just been told by my Accountant that it may be too late to apply for ER. The situation is that my Company had no new business since June 2015. My Company continued to pay a salary until end of March 2016 that's when I gave myself a P45. My company continued to pay dividends until end of April 2017. Fees to Companies house have been paid till that date. MVL Company was appointed 24 May 2017 to placed Company on members voluntary liquidation. Can anyone tell me if it is too late to apply for ER?

[bd6759]

Your accountant is correct in the sense that by giving yourself a P45 it looks like you are not employed, and being an employee is a condition for relief.

However, irrespective of the P45, you must still be a director (otherwise you could not be acting on behalf of the company), and being an office bearer (a director) is sufficient for the relief to be due. I am presuming here that you did not hand written notice to yourself that you were resigning as a director.

[lawfra]

I remained a Director till the start of the MVL.

With respect to the "Date of disposal" I am not sure what date I should be stating. Do I state the date when final distribution was made (18 Aug 2017) or the date when Liquidation closed (28 June 2017 as shown in MVL website) or the Companies House dissolved date (5 Dec 2017)?

[bd6759]

I remained a Director till the start of the MVL.

Why did you stop being a director?

With respect to the "Date of disposal" I am not sure what date I should be stating. Do I state the date when final distribution was made (18 Aug 2017) or the date when Liquidation closed (28 June 2017 as shown in MVL website) or the Companies House dissolved date (5 Dec 2017)?

The date of the distribution is the imporant one, and the qualifying conditions must have been present up until that date.

[maths]

Not my scene, but would it not be sufficient for ownership and employee/director status to subsist to the date of cessation of trading?