QuickCapital is the Portland process of returning capital to shareholders quickly using a members’ voluntary liquidation, where the client and advisor have completed the majority of the work pre-liquidation to minimise costs. This makes absolute sense. Typically the business will have been sold or the directors will have called time, so with their knowledge of the background, they are best placed to convert the assets to cash and deal with settling any liabilities. At that point, typically, all that will be left will be cash at bank and a final tax liability. In those circumstances, we will be instructed to carry out the relatively simple, but very important, task of ensuring that the formalities enabling the cash to be distributed to the shareholders as a return on capital can take place, thereby, in most cases, taking advantage of entrepreneurs tax relief and then subsequently dealing with the dissolution of the company.
This QuickCapital process has been designed to save client’s money and enable them and their professional advisors to maintain control of the process. In enables the accountant, with knowledge of the client’s affairs and the client to deal with most aspects required to be concluded, which in turn keeps the liquidation costs to a minimum and as a result the capital can be distributed without unnecessary delay.
Why you should use Portland Business Support & Advice to help you
Having invested blood, sweat and tears into building a business, when it come to collecting your reward, don’t risk a mistake that could cost you £000’s in delays, wasted fees and additional unnecessary tax. Although a relatively simple process, we have seen examples of lowballing ‘bucket shop’ type operations get it wrong. We have seen incorrect ‘capital distributions’ made pre liquidation that were treated as ‘dividends ‘ by HMRC, thereby losing significant tax benefits, we have also seen inordinate delays in distributions being made and costs escalate due to inexperience and lack of forward planning.
One thing that also always surprises, is the willingness of business owners, possibly attracted by the lowest quoted price, to pass over control of possibly hundreds of thousands of pounds of their money, to a firm that they may never even meet in person.
At Portland Business Recovery:
- We have a dedicated team to ensure the process runs smoothly and without delay
- We don’t sit on your money, we are able to distribute funds quickly and on a timetable to suit you
- Any funds held by us will be in a separate client account in your company’s name
- Where appropriate, we are willing and able to distribute assets ‘in specie’
- We are well known, trusted, reputable, established and financially secure
- We have professional indemnity insurance to ensure that even if a mistake were to be made, you will not be out of pocket
- We are extremely cost competitive, but don’t cut corners
- We will provide a fixed fee service to ensure you have control
The QuickCapital approach has been designed by us to facilitate a quick, efficient and low cost distribution of capital to shareholders.
We are also experienced in more complex capital distribution arrangements, including the division of trading entities from property, tax efficient S110 schemes to divide assets between different shareholders or companies, and the winding down of UK subsidiaries of overseas groups.
If you have any questions regarding our approach to members voluntary liquidations, we are happy to answer them on the telephone or meet on a no obligation basis.