Striking the company off - None MVL Striking the company off - None MVL
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  1. #1

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    Default Striking the company off - None MVL

    Hi,

    Just looking at all options at closing down my Limited Company, and although not tax efficient, would striking the company off rather than going down the MVL route also be tied to the 2 year "phoenixing" rule.

    i.e if I took dividends to get company funds down to £25k, then struck the company off, taking capital gains tax on the £25k, would I still have to wait 2 years if I ever decided to create another limited company? My accountant isn't so certain

  2. #2

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    As long as you can justify that any "dividends" you take now, weren't taken in anticipation of the winding up (ie whereas the remaining ~£24k were), then yeah, you're likely fine. By that I mean the new-ish TAAR which is the anti phoenixing 2 year thing you're probably thinking of, does apply to liquidations only. However, in some more blatant situations you could fall foul of the more general GAAR. Unlikely for a one off situation like yours.

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    Quote Originally Posted by Maslins View Post
    As long as you can justify that any "dividends" you take now, weren't taken in anticipation of the winding up (ie whereas the remaining ~£24k were), then yeah, you're likely fine.
    To your knowledge has anyone ever been challenged (and upheld) by HMRC etc on that?

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    Quote Originally Posted by pr1 View Post
    To your knowledge has anyone ever been challenged (and upheld) by HMRC etc on that?
    No...but that's certainly not me condoning it.

  5. #5

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    Quote Originally Posted by Maslins View Post
    No...but that's certainly not me condoning it.
    And it probably hasn't because the good advice as you stated is to be very careful and try and avoid so a very limited number of instances to pick from. If PR1's stance was no therefore lets do it then everyone one would and there would definitely be some cases... if that makes sense.
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    Quote Originally Posted by northernladuk View Post
    And it probably hasn't because the good advice as you stated is to be very careful and try and avoid so a very limited number of instances to pick from. If PR1's stance was no therefore lets do it then everyone one would and there would definitely be some cases... if that makes sense.
    Nobody I know has been busted for robbing a bank. Therefore I should be able to rob a bank and be safe. That kind of logic?

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    Quote Originally Posted by Maslins View Post
    Nobody I know has been busted for robbing a bank. Therefore I should be able to rob a bank and be safe. That kind of logic?
    Exactly.
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