Return of Capital
The Return of capital is often achieved by way of a solvent, or Members Voluntary, Liquidation (MVL). This is a formal insolvency process where a solvent company is wound up, most frequently when it's at the end of its life.
An MVL provides directors with comfort and certainty, as the liquidator will ensure full compliance to confirm the company’s solvency. It also offers a tax efficient method by which members can extract the company’s surplus cash as a capital payment, as opposed to an income paid by way of a dividend.
An MVL is distinguished from insolvent forms of liquidation by a formal undertaking from the directors that the business is solvent and can pay all its debts, including statutory interest, in a period not exceeding 12 months.
At Cork Gully, our team has years of experience dealing with solvent liquidations and will carry out this process for you quickly and efficiently.
Group structures may become overly complicated for a variety of reasons – through longevity, international expansion, mergers and acquisitions, joint ventures and inter-company agreements. Inevitably the more complex the picture the more management and administrative resources are tied up in unnecessary and sometimes duplicate paperwork.
Our team are able to help companies reorganise and simplify their corporate structure by dissolving inactive companies and entities. This will save cost and ensure the business is streamlined and fit for purpose.
At Cork Gully our team works closely with tax advisors to ensure that the new corporate structure and its entities are simplified and that the optimum tax strategy is implemented.