Solvent liquidations expected to increase in anticipation of tax rule changes
Thousands of entrepreneurs are expected to put their companies into solvent liquidation (i.e. ‘Members’ Voluntary Liquidation’) over the next three months. This is because tax rules that come into force on 6 April 2016 will result in some company shareholders being unable to benefit from tax advantages that are currently available as a result of qualifying for Entrepreneur’s Relief.
However, company owners should not face problems in claiming Entrepreneur’s Relief after April 2016 if they liquidate an eligible company that is at the end of its life.
Article © www.ft.com