Can I buy back company assets during or after liquidation?
Can you purchase the assets of a company after liquidation? Liquidation is when a company sells its assets and uses the money to pay back creditors, either in full or partially. These assets are usually sold through auctions, once their value has been determined by the liquidator. The liquidator’s main job is to ensure that […]
Members’ Voluntary Liquidation: Contingent Liabilities
What are contingent liabilities in a Members’ Voluntary Liquidation (MVL)? A contingent liability refers to a potential debt that a company may face depending on the outcome of a pending court proceeding. In simpler terms, the liability’s existence depends on a future event. In an MVL, which relies on the company’s solvency, these potential future […]
What is a Members’ Voluntary Liquidation (MVL)?
What is the process of a Members’ Voluntary Liquidation (MVL)? A Members’ Voluntary Liquidation (MVL) is a formal procedure for winding up a solvent company in a cost-effective manner. MVLs are commonly used as a tax-efficient strategy for exiting a profitable company, particularly when the company has fulfilled its purpose or when shareholders and/or directors […]
What is Business Asset Disposal Relief in an MVL?
Understanding Business Asset Disposal Relief (BADR) in a solvent liquidation (MVL) Business Asset Disposal Relief, formerly known as Entrepreneurs’ Relief, is a tax relief scheme designed to reduce the Capital Gains Tax rate payable upon the sale or liquidation of a solvent company. Through this relief, Capital Gains Tax can be decreased to 10% for […]
The Legal Ramifications of Winding Up a Company With Debts
What are the legal consequences of winding up your company with debts? On 28 March 2020, the government revealed fresh measures to help struggling businesses due to the coronavirus. Changes to insolvency law will provide companies with a pause to continue operations while they seek rescue options. Wrongful trading rules will also be temporarily stopped, […]
My business bank account has been frozen – what can I do?
Understanding how a validation order could unfreeze your company’s bank account If you’ve found your limited company bank account frozen, it’s likely due to a Winding Up Petition (WUP) issued against your business. With no active bank account, your business operations will likely come to a sudden stop. If you don’t respond to the WUP, […]
What is a Validation Order for a frozen business bank account?
How to apply for a Validation Order to unfreeze a business bank account? Many business leaders know that receiving a winding-up petition (WUP) is serious. But what surprises some is finding their bank accounts frozen when they come to work. This freezing is a common part of the WUP process. Banks usually freeze accounts after […]
What is the difference between a Statutory Demand and a Winding Up Petition?
The difference between a statutory demand and a winding-up petition If you’ve received a statutory demand or faced a winding-up petition threat, you might be concerned about your company’s future. Though both terms are different, both processes are profoundly serious actions by creditors and present a real threat to your business’s future. What are […]
Understanding a Creditor’s Petition and the process that follows
What happens when a creditor issues a Winding Up Petition against your company? A creditor’s petition, often called a Winding Up Petition (WUP), is usually the last action a creditor can take to collect a debt that has been unpaid multiple times. Issuing a WUP is costly and brings severe consequences for the targeted company. […]
How to Wind up a Limited Company?
How to wind up a company and strike off your business? Understanding how to close a company can be confusing. The process varies for solvent and insolvent companies. If you’re considering striking off your business, we assume it’s solvent and can settle all outstanding debts in full. For UK companies winding up, two main types […]