Re: Winding-up best way

In article <Xs-dndFDOcdzUIjVnZ2dnUVZ8smgnZ2d@xxxxxx>, Rob graham <rttgrahamwow@xxxxxxxxxxxxxx> writes
We have a small company with 70 shareholders. If we sell our only asset (a
property) but wish to retain the company, or a clone of it, with the current
shareholders having been paid a proportion (nearly all) of their share
value, what's the best way of going about this? Our accountant says we need
to involve a liquidator, but this seems excessive. If the share value is say
£1,000 and we pay shareholders say £900 and they retain the shares, is
there a tax problem with this? Or should we buy up all the shares and issue
new ones in a new company?

Rob Graham



This is a bit light on detail, so can't give any definitive advice.

I suspect that the issue here may be that the shareholders want capital treatment for their gains, rather than income treatment.

This being the case it may be easier to achieve capital treatment if the company was put into a formal liquidation rather then go for an informal 652 winding up following the ESC C16 route as this might be a bit tricky satisfying ESC C16 if there are 70 shareholders and the company is going to be kept going for the time being.

I would suspect that a liquidator would charge 3K minimum.

If capital treatment is not required then from the information given I cannot see a problem an informal 652 winding up, or even keep the company going and just pay the £900 out as a dividend in the normal way.

--
Jon Griffey FCCA CTA
Hackett Griffey
Chartered Certified Accountants & Registered Auditors
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