Postby PeterBalham » Wed Jul 14, 2021 11:06 pm
I talked to an insolvency practioner and he said if I enter into a MVL it would be a capital distrubiution ay 20%.
I mentioned I had read the TAAR provisions and was worried I would be caught by them and the distirbution would be treated as a dividend and taxed at 38.1%
He then changed his mind and he then said I need to get advice from an accountant.
I have talked to three so far
One of the accountants had no idea , one said he was "bullish" it would be tased at 20% , the other is still researchng
All of them agree if I change the trade of the company to holiday lets I would get business asset relief and pay 10% on the first £1m anf then 20%.
I posted here to see if anyone knew a definitive answer as to whether entering into a MVL and closing the company via a distribution what tax rate I would pay
so far everyone says it is initially a capital distribution but there is disagrement as to whether the revenue may decided under the TAAR rules I would need to pat rax at 38.1%
The sure way though they all agree is to change the trade of the company , maybe the accountant I last aksed will give me a definitive answer this week