Hi
This is not a tax related question but an academic curiosity with the process of MVL of a company.
On one previous occasion when I liquidated my company, the liquidators I appointed took control over the entire process including my business bank accounts, and at the end of the liquidation process transferred the funds to my personal bank account after deduction of their fees and issued me a certificate that allowed me to claim income ER.
This time the liquidators recommended by my accountants have a different process. They are not going to take control of my money, rather I have to pay them as and when advised. Besides just before the liquidation I will be asked to transfer the entire funds from my business bank account to personal account - effectively this becomes a loan. The liquidator will then declare a distribution in specie whereby he will allow each shareholder to have the debt that they owe the company thus writing off any liability they may have to the company. (The liquidators fees are also cheaper).
What is essentially the difference between the 2 approaches and could tax treatment (Capital Gains/Entrepreneur Relief) be different or worse in the latter case.
I am the owner and sole share holder of the company.
Regards
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