Winding Up Petitions And Bankruptcy Orders – What Is Involved?
The quick answer If your limited company is wound up by the Court or you are made bankrupt then you will lose control of your assets and your business. A Liquidator or Trustee in Bankruptcy will be appointed to sell the assets and close the business. In both cases, this person will be a Licensed […]
What Is Entrepreneurs Relief And How Do I Get It?
The quick answer Business Asset Disposal Relief (formerly Entrepreneurs’ Relief) is a Capital Gains Tax relief that means you only pay 10% Capital Gains Tax on the first £1m of gains on the sale of qualifying business assets. This can include share sales, buy backs or distributions of reserves via a Members Voluntary Liquidation. You […]
What Is A Winding Up Petition?
The quick answer A Winding Up Petition is a legal document and is served on a company that owes more than £750. It will eventually lead to the winding up of the company forcing it into liquidation if it does not pay the debt or deal with it in an alternative way. In more detail […]
What Is Corporation Tax Liability?
The quick answer A Corporation Tax Liability is owed by a limited company on either tax on trading profits, tax on a capital gain or tax on a distribution often called a section 455 liability. A section 455 liability arises from an overdrawn directors loan account not paid back within nine months of the company […]
How To Dissolve A Partnership With Financial Problems
The quick answer If the business is a solvent partnership then it will be dissolved by agreement between the relevant parties in accordance with a partnership agreement. If the business partnership is insolvent and cannot pay its debt then it will go into Liquidation, Administration or a Partnership Voluntary Arrangement (“PVA”). In more detail There […]
I Have Received A Winding Up Petition – What Should I Do Next?
The quick answer A Winding Up petition means that someone you owe money to, which is not usually disputed, has asked the Court to wind your company up and put it into Compulsory Liquidation. A winding up petition is very serious if you can not pay off the debt. You should contact a Licensed InsolvencyPractitioner […]
How Can I Control Creditor Pressure
The quick answer When facing creditor pressure, the best advice is to deal with that creditor directly and not ignore them. A solution may be to agree a payment plan or ask an Insolvency Practitioner to speak to them if the situation becomes more serious and you would like a barrier between you and them. […]
Can Receivership Be Stopped?
The quick answer Yes, but only if you pay off the debt due under it before the date of Receivership. Alternatively, it is worth negotiating with the lender who has the charge on the assets to give you more time to pay or to refinance the debt if this is a realistic possibility. In more […]
Are Shareholders Liable For Any Of The Company Debt?
The quick answer The answer is usually no. That is the whole point of a company being limited. On insolvency, only the company assets can be claimed to pay the creditors unless the shareholders have given personal guarantees. If the company was formed as a company limited by guarantee (these are usually clubs, societies or […]
The Advantages And Disadvantages Of Receivership
The quick answer Receivership or an LPA Receivership is used by banks to enforce their loan when a borrower defaults. The advantage to a bank or lender is they get control of the security, for example, a freehold property, so it can be sold. They do not need to go to Court to appoint an […]
