Wayne Rooney Set To Benefit From An Estimated Distribution Of £20,849,000 In The Liquidation Of Stoneygate 48 Limited
Overview Of Shooting To £20million From A Liquidation
The company Stoneygate 48 Limited started from modest beginnings. The 28 February 2003 balance sheet had total shareholder funds of £2.
It grew nicely. The balance sheet for the year ended 30 June 2005 showed shareholders funds of £660,552. However, the 2008 accounts filed showed that in 2007 and 2008 as at 31 March 2008, the Company was insolvent on a balance sheet basis in the sum as at that date of £594,137.
However, things changed and by 31 March 2012, the balance sheet had reached the delightful position of c.£3million positive net assets. Thereafter the Company grew very rapidly indeed, largely due to its current asset investments.
The Company has recently been placed into Members Voluntary Liquidation on 8 September 2021.
The Statutory Declaration of Solvency as at 7 September 2021 showed that it had a surplus of assets available for shareholders in the sum of £21million.
It appears that the sum of £11,700,000 was at that date owing to the Company by debtors. The historic accounts seem to show that as at 31 March 2021 Mr Rooney owed the Company £6,970,408 by way of what would appear to be an Overdrawn Director’s Loan Account after a further advance during the year of £3,838,311.
If the overdrawn director’s loan account is within the c.£11.7million of debtors at the date of Liquidation, then Mr Rooney will typically have that sum distributed to him via a process known as a Distribution In Specie. In such an instance cash will usually not need to change hands but the distribution will subsequently be recorded on Mr Rooney’s personal tax returns.
Benefits Of A Voluntary Liquidation To Shoot To A Tax Efficient Return
When a company has reached the end of its life and is no longer needed then a potentially tax-efficient way to extract capital by the shareholders can be a solvent Liquidation. This can be particularly beneficial if you qualify for Entrepreneurs Relief In A Voluntary Liquidation or what is now called Business Assets Disposal Relief.
If you qualify, for Business Asset Disposal Relief you can potentially pay capital gains tax at the rate of 10%.
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Disclaimer: Shooting To £20million From A Liquidation
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