recovery of S455 on informal winding

recovery of S455 on informal winding

Didn't find your answer?

company ceased trade 31 March 14 balance sheet comprised £4k s455 DLA £16k cash £17k CT £11k other creditors £1k P&L reserve £25k

if DLA is effectively repaid by 30th June 2014 then is the soonest the s455 tax repayable really 31st December 2015 - or will HMRC allow the credit to be deducted from the£11k current CT balance due 31st December 2014?

Replies (5)

Please login or register to join the discussion.

avatar
By seawych
15th Apr 2014 21:15

£25K what?

Assets are £4K + £16K

Liabilities are £17K + £11K... then we have ...

"£1K P& L reserve £25K..."  Sorry, I don't understand.

We need to know if the company is solvent before we can work out the full answer.

But, in answer to your last point, yes, HMRC will set off any s458 relief against any outstanding mainstream CT (or other liabilities). But the credit will have an Effective Date of Payment (EDP) of 31/12/15.  Interest shouldn't be a problem in this case but it's always something to look out for.

 

Thanks (0)
Replying to NH:
By johngroganjga
16th Apr 2014 07:44

Misread

seawych wrote:

Assets are £4K + £16K

Liabilities are £17K + £11K... then we have ...

"£1K P& L reserve £25K..."  Sorry, I don't understand.

We need to know if the company is solvent before we can work out the full answer.

You have treated what the OP say is £17k cash as if it were a liability, and you have missed other creditors of £1k.

So on the OP's figures the top half of the balance sheet is £4k + £16k + £17k - £11k - £1k = £25k.

 

 

Thanks (0)
avatar
By seawych
23rd Apr 2014 13:34

I'm puzzed....

I read it as: -

£4K S455 DLA -asset  (I assumed that "S455 DLA" was the OP's way of describing an overdrawn Director's Loan Account)

£16K cash -asset

£17K CT (which I assume means the CT liability for the year) -liability

£11K other creditors- liability

Then the next bit appears to be: -

"£1K P&L reserve" followed by "£25K"

However I can see that £4K S455 and £16K DLA as two separate items does make sense. 

I didn't think of it that way because I don't like to recognise tax repayable as an asset until I am absolutely confident that it will happen.  

A comma would have come in handy!

 

 

 

Thanks (0)
Stepurhan
By stepurhan
23rd Apr 2014 14:17

Effectively repaid?

Will it be repaid or not? If not, on what basis is it to be treated as repaid for the purposes of making the s455 reclaim?

Assuming valid repayment by some means, you will need to report the repayment to HMRC before you can do anything with the s455. Presumably you are doing a CT return for the final period of trading, so it can be reported on that as within 9 months of the period end. Only then can you make the reclaim with offset as necessary.

Thanks (0)
avatar
By seawych
24th Apr 2014 21:25

Thanks for not stating the obvious...

.. I only read as far as "£25K" ... and didn't read as far as "the £11K CT balance".

I promise to never make  a posting without reading the OP all the way to the end.

However, the important bit about S458 relief was right as confirmed by the later posters.  FLW?

 

 

Thanks (0)