What is the disposal date for a company strike-off?
One of my clients emigrated to Australia last year and dissolved his company under Section 1003 of the Companies Act. We obtained ESC C16 and delayed the DS01 until February so the company would not be dissolved until after 5th April. As he is now non-resident, that should avoid capital gains tax (not sure whether it does in Australia though - originally it was meant to be Singapore which has no CGT). I am aware of the 5 year rule and the need to file a protective claim for ER.
But when is the disposal date? Is it a) when the company is dissolved as confirmed by Companies House, b) when ESC C16 was granted, or c) when he took all the money out of the company? I'd have thought a) as that was when the underlying asset (the shares) ceased to exist. ESC C16 turned it into a capital gain but presumably does not trigger the gain immediately.
However, I guess the extraction of the funds could be seen as a final distribution, and that was last year. We treated it as a loan until ESC C16 was granted but not thereafter. In that case it would depend on the book entries, and as there were no statutory accounts for the final period, there is nothing to reflect this apart from a board minute which merely grants authority for the funds to be distributed at some point.
I'm just about to do his tax return so I suppose I'd better check this out first.
- Any Scottish members out there? 13,560 503
- help needed with rti paye please 45 2
- Director selling assets to the company that were given to her 373 10
- Can't read my handwriting 779 19
- Undeclared rental income 371 7
- Home Use Costs in Company Accounts ? 298 7
- Sick pay 219 6
- Directors self assessment 124 2
- Employer's Helpline 209 1
- Employment Allowance Incorrectly Claimed for Domestic Payroll 96 2
- Commercial rental property - still Schedule A? 185 1
- Now Scotland has voted "No", when does England get to vote? 1,749 70
- Travel and Subsistence expenses while abroad 1,083 8
- How to prove to HMRC that you was not self employed? 948 27
- Penalties for an amended p35 (2012/13) 127 2
- 2 sole traders merging to become a limited company what do they need? 302 10
- Unfurnished Lettings Expenditure 250 6
- Capital Gains Tax on title transfer 445 20
- cross border vat 153 3
- Which profit figure to use 214 2
- Raiders of the Lost Tax File 1,410
- Chartered Accountant in County Down N.Ireland 539
- National Insurance 438
- Non Resident 328
- Hands on experience of Digita 258
- Best way to take money from a business if you have unlimited EIS allowances? 246
- Does anyone use PS Financials accounting software out there? 164
- Umbrella pay services 143
- VAT on ESS via Apple, Google, Nokia - 121
- EPS Analysis - Change to EURO 121