Comedian Frankie Boyle has recently been in the spotlight for putting his firm Transkor Productions Limited into voluntary liquidation.
The TV entertainer has been attracting attention as he has recently benefited from making use of the entrepreneurial tax relief scheme through the implementation of a members' voluntary liquidation.
Mr Boyle's company had a realisable asset value of around £3,083,884 before the liquidation took place. The liabilities were roughly £873,388, most of which was owed to HMRC. The estimated surplus value left-over after the liquidation was paid for and HMRC debts were settled for Corporation Tax & Vat was around £2,201,906.
Instead of extracting the remaining cash as income or dividends, Mr Boyle used the tax relief scheme through the use of a members' voluntary liquidation and only paid around 10% tax in comparison with 50%.
This is a perfect example of how directors' can utilise a members' voluntary liquidation to extract cash and assets in a tax efficient way.
