Solvent Liquidations – Pricing & Immediate Distributions
Due to the huge interest we received at AAT’s Annual Conference, where our solvent liquidation pricing and process was given a lot of praise, this month’s headline article summarises solvent liquidations (MVL’s).
What are Solvent Liquidations?
A solvent liquidation (or MVL) is the process which is used by an insolvency practitioner to ensure that company shareholders, of businesses which are closing, or which have been sold, can benefit from entrepreneur’s relief when completing their personal tax return. Therefore benefiting from reduced taxes.
See here for our page which fully summarises solvent liquidations.
Who Is Entrepreneurs Relief Available To?
Entrepreneurs Relief is available to:-
- Shareholders whom have disposed of all or part of their business (if only part of the business is sold, the sale must represent one separate part of the business and not some of the shares of the whole business).
- Shareholders with at least 5% of voting rights.
- Shareholders whom have held their voting shares for at least 12 months.
- Trading Companies (therefore no property or asset holding companies).
- Shareholders whom have been employed or whom have acted as officers of the Company for 12 months.
What do Bridge Newland Charge for Solvent Liquidations?
We charge a fixed fee of £2,000 plus VAT plus disbursements but reduce this fee to £1,500 plus VAT plus disbursements should the case be a referral from an accountant who will provide a number of solvent Liquidations to us each year.
The disbursements relate solely to a bonding cost and the statutory advertising. The statutory advertising currently amounts to a cost to the case of £338.40 and the bond cost ranges from £200-700 depending on the size of the cash balances to be distributed.
Why should I use Bridge Newland to complete my Solvent Liquidation?
Other than our incredibly competitive pricing, we also pay immediate distributions of the majority of the shareholders cash balances as we distribute 90% of the shareholder’s funds immediately upon the Liquidator’s appointment. This mean that unlike other IP’s the majority of your funds are not held for a month or two whilst adverts for claims are placed and claim deadlines pass. We are able to provide this immediate distribution as we have worked with a solicitor to create an indemnity document which gives me protection as Liquidator from any personal liability and commits the shareholders to repay sufficient funds to repay any creditors which are found after the notices for claims are advertised. The remaining 10%, less the agreed fees and disbursements, are then paid to the shareholders once tax clearances are received from HMRC (which typically take 3-6 months).
If you would like to know more about solvent liquidations then please feel free to call us on 0800 612 6197 or e-mail me at firstname.lastname@example.org.
Categorised in: Latest Insolvency News