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.
- Enquiry into tax return - how co-operative would you be? 341 8
- Halloween - do you celebrate it? 1,404 47
- Interest on HMRC contract settlement 162 3
- Goodwill gesture for providing work 432 12
- Share premium or Directors Loan 732 30
- VAT reconciliation and VAT return on Sage 108 3
- What would you do in this situation? 143 5
- Filing a P87 (professional fees) before year end. 134 2
- Recommendations for payroll/AE software? 603 13
- More HMRC on gov.uk 637 11
- Rollover relief - when does gain crystallise in this situation? 88 1
- Offshore company transferring assets to a UK individual. 341 14
- Interest Free Loan - Salay Sacrifice? 244 4
- Research and development - repayment timescale 220 5
- Sole trader hid directorships. 391 6
- NOVA 555 1
- Clearing payments on account/ Sage 50 275 10
- Regional Development Grant 125 4
- Problem ex client...again.. 2,418 21
- Company car without a salary 235 2
- Bonus Bonds 391
- Insolvency and whistle blowing 378
- Transfer of funds into recently set up company 289
- TPR imposes first penalty notice fines 258
- Box 8 VAT Return - deposit payment 187
- Husband proposes to buy the car as Director unable to acess finance 179
- Finance Lease 157
- Company Car Lease 154
- Form 42 149
- Demerger Reserve 132