MVL and moving abroad

[TomA1966]

Hi all

Most of what I own is excess cash built up in my business over the years. I’m planning to retire to Dubai next year -I’m a party guy and we don’t have longevity in my family so want to make the most of it for the time I’ve got left.

I’ll need to do a members voluntary liquidation to extract the cash, and I gather I’ll need to be already moved over there when I pull the trigger on this, to avoid UK capital gains tax (I won’t be coming back).

Just wondering has anyone any experience of going through an MVL from abroad, and does this add a level of complexity to the work- or it is only different because the funds are wired abroad to the former shareholders rather than staying in the UK.

Thanks in advance!

T

 

[ChrisCallaghan]

I cannot speak to the tax implications, but I and the firm I work for have handled several MVLs where the directors and shareholders were based overseas, including Dubai. This has not caused any issues or hold ups.

 

[UK Contractor Accountant]

why would you need to do a MVL?

Just tell HMRC you have left the UK and become Resident in Dubai. (P85 form).

Personal income (dividends) then becomes tax free in Dubai.

 

[Lisa Thomas]

Everything is digital these days so makes little odds where the shareholders are based, except for potentially ticking a few extra boxes on a money laundering compliance checklist...

Check with your accountant that an MVL is the best option for you before speaking to an IP.

Chris (no doubt) and I would both be happy to quote you for an MVL.

 

[TomA1966]

Thanks guys, really appreciate all your input and apologise for the delay replying due to work.

It’s good to know that being overseas doesn’t make things a lot more complex and if I go down the MVL route I will no doubt be in touch with you for a quote on due course Lisa and Chris, thanks again.

@UK Contractor Accountant , I hadn’t considered that possibility, and will look into it in more detail, thanks a lot!

 

[Lisa Thomas]

You're welcome. Bear in mind the upcoming budget might change the tax benefits to shareholders so keep an eye out.

 

[TomA1966]

You're welcome. Bear in mind the upcoming budget might change the tax benefits to shareholders so keep an eye out.

I think one of their nuclear options would be a tax on unrealised capital gains on shares on leaving the country I.e. an exit tax….that would screw me, yes.

 

[Lisa Thomas]

Let's hope not.