From 1st March 2012, the Extra-Statutory Concession which allowed shareholders to realise assets informally, and pay Capital Gains Tax ended. The new rules meant that informal distributions totalling over £25,000 per Company, would be subject to Income Tax.

It is only via an MVL that total distributions from solvent companies over £25,000 can be subject to Capital Gains Tax.

BEACON have developed a streamlined process for assisting Director/Shareholders wishing to extract dividends from solvent companies in the most tax efficient way possible and can normally allow a same day payment of funds to Shareholders as a Capital Distribution.

The process is straightforward and easy for all involved:

  • BEACON prepare and can send all documentation via email and accept scanned, executed documents in return
  • The Declaration of Solvency (an asset / liability statement of the company) is sworn in front of any local solicitor or commissioner for oaths (normally charging approx. £10) and then returned, either via email or post to us.
  • Upon receipt of these documents, the MVL can usually commence the same day, with funds available for payment to Shareholders on that same day, as a Capital Distribution
  • Any VAT paid on our fee and disbursements can usually be reclaimed and paid out to shareholders (if the Company was ever VAT registered).

No Hidden Costs!

BEACON charge a fixed fee, including disbursements, from £2,000 plus VAT.

Contact CHERYL BROWN on 01722 788007 for further details.