There are a number of operational and financial challenges that can hinder business performance. Our specialists work closely with your management and other stakeholders to identify key issues and create strategic restructuring solutions aimed at creating a sound basis for future trading.
Applying for striking off or implementing a Members Voluntary Liquidation (MVL) for non-trading or redundant companies can reduce costs, release capital for use elsewhere in the group or simplify the group structure.
This option can be used as a tax efficient scheme for achieving a commercially driven demerger or corporate spilt.
Section 110 of the Insolvency Act 1986 allows a liquidator to accept shares in a new company or companies as consideration for a part or whole disposal of the business of the Company in liquidation. It is commonly used where a Company has more than one business, and wants to dispose of one of its businesses.
A properly structured Section 110 scheme of reconstruction benefits from the tax reliefs provided in Sections 136 and 139 of the Taxation of Chargeable Gains Act 1992 and will be tax neutral at company and shareholder level.
For further information, please contact one of our Partners who will be able to assist you.