A record number of solvent companies were liquidated in March because of directors rushing to cash in before rule changes that some feared would more than triple their tax bills.
Since the start of April, directors winding up a solvent company can no longer claim entrepreneurs relief on capital gains a tax rate of 10 per cent if they continue to work in the same trade in the next two years. Tax on any dividends from the business has also increased.
Companies House reported 2,663 solvent liquidations for March, nearly three times the previous record of 992 in April 2015. Although a rise had been predicted, it far exceeded expectations.
Andrew Tate, president of R3, the insolvency trade bo…
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