Solvent liquidations peak in March

A record number of solvent companies were wound-up in March 2016 as company directors responded to a change to tax rules introduced in April according to research by insolvency trade body R3.

There were 2 663 solvent liquidations in March. The monthly average for the previous 12 months was 768.

From 6 April directors winding up a solvent business can no longer claim entrepreneurs’ relief from the capital gains tax due on any gains if they continue to work in the same trade as that company in the next two years.

Andrew Tate R3 president said: ‘The scale of the spike in solvent liquidations is a surprise. We expected there to be an increase as the clock counted down but not one as big as this. There will have been a mixture of different types of companies being liquidated including those companies owned by...