I will very soon be beginning the MVL process, and I have an outstanding DLA of around £20k. I borrowed some money from the company about 3 years ago, and have slowly been paying it back, but there is still ~£20k remaining. The company paid s455 tax of around £10k when I borrowed the money (or soon after), which I believe should be returned when the loan is paid back.
There will be around £80k cash in the company at the time of MVL, no other assets apart from some computer equipment. I have some other personal income, which limits the amount of dividend i can withdraw while staying in the basic rate band.
So i have 2 main queries:
1. Should I pay the company back the £20k before liquidation? Or use Distribution in Specie? My accountant has essentially said to me "its up to you". I am rather confused as to how the DiS actually works. The simplest approach would be for me to pay it back, but is there any benefit in using DiS? Is the net result the same?
2. In either case, how does the refund of the s455 tax work?
Thanks in advance
There will be around £80k cash in the company at the time of MVL, no other assets apart from some computer equipment. I have some other personal income, which limits the amount of dividend i can withdraw while staying in the basic rate band.
So i have 2 main queries:
1. Should I pay the company back the £20k before liquidation? Or use Distribution in Specie? My accountant has essentially said to me "its up to you". I am rather confused as to how the DiS actually works. The simplest approach would be for me to pay it back, but is there any benefit in using DiS? Is the net result the same?
2. In either case, how does the refund of the s455 tax work?
Thanks in advance
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