Two companies, unconnected. A owes B £30k. B is struck off, without any formal liquidation or other insolvency procedures. The question is whether the credit appearing in A's P&L will be taxable or not.
Para 5(3) and (4) of FA96 Sch 9 'exempt' such a credit where the release is part of a statutory insolvency arrangement. As far as I can tell, the straightforward striking-off of a company does not fall within that heading, but can anyone convince me otherwise, such that the £30k release is not taxable?
Penny Eaton
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Nick...
A good point, but why would there be anything owing to the Crown if the company has waived the debt?
But would bona vacantia apply in any case? I thought it normally applied to assets such as cash, or assets that could be sold. I have never heard of the Crown stepping into the shoes of a debtor and attempting to realise the debt. but then again my practical experience of bona vacantia is nil! (Many years ago I had a client with share capital of £50k (and residual cash of the same amount - nil reserves), which sum was fully distributed under ESC C16. The Crown never pursued the amounts that strictly ought to have passd to it.)