Liquidation caught by transactions in securities?

Liquidation caught by transactions in securities?

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I have a couple with large personal capital losses.

They also own a company which has a large capital gain in current tax. 

Can the company pay the CT (CGT) on the gain and then be liquidated with the net proceeds, triggering CGT charges to shareholders which can then be used against their capital losses?

Or will the transactions I securities legislation bite and the liquidation distribution be treated as a dividend?

Is it worth going for clearance or is their no chance?

Thanks  

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By stephenkendrew
30th Jul 2015 10:05

what are they planning to do in the future?

Are they planning to carry on trading via a new company or is the business ceasing completely? 

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By taylorstaxservices
10th Aug 2015 11:44

New co


Thanks - they are planning to carry on trading through a new company. 

They were also considering loaning some funds from oldco to newco (prior to liquidation) and then writing off loan but I suspect this will definitely be caught?

 

Many thanks 

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