HMRC One To Many letters and company liquidations

21 Nov 2023

HMRC’s Wealthy Team are sending One to Many letters (see below) to taxpayers who associated with companies which were subject to a Members’ Voluntary Liquidation (MVL). Recipients are being asked to check their 2021/22 tax returns that they have included a corresponding capital distribution, or potentially an income one if they were still engaged in the same/similar trade or business following the MVL. Anyone who believes an amendment should be made are urged to make such changes before 31 January 2024; failure to do so where HMRC believe an error does exist may be subject to an enquiry with the potential for inaccuracy penalties.

MVL letter to taxpayers