Reading Rebecca's article in Tax Adviser on the new legislation on dissolution distributions, I picked up one point that I was not aware of. Apparently, it makes no difference if any part of the distribution represents repayment of capital - if the amount(s) paid out exceed £25k the whole lot will be treated as income. This does sound nonsensical - if a company has, say, £50k capital and £50k in the bank (and no P&L reserve) it makes no sense, and is manifestly unfair, to treat what can be nothing other than repayment of capital as income.
I would have thought that in applying the £25k test to distributions, you first of all had to decide what the distribution is. s1000 of CTA 2010 excludes any part of the distriubtion which represents repayment of capital. I can't find anything in the new legislation that trumps that definition.