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.
- Taxfiler - SA100 - More efficient? 572 5
- See you all on the other side 664 6
- 12Pay 423 2
- dividends 564 2
- R&D 301 1
- Quarterly Reporting - The Logistics 1,153 17
- Auto enrolment contribution rates 430 3
- How long are you waiting for appeal reply 386 4
- Borrowing money to loan to company 354 1
- Mother as Guarantor for Son's mortgage 530 5
- Seeking a tax case 622 9
- When do we qualify for state pension? 482 4
- Companies house strike off 503 3
- Tax treatment of alterations to property 406 2
- Moving to the cloud 725 9
- Iris open space/doc exchange for SATRs 208 2
- How much to charge for payroll? 878 16
- Unincorporated charity transfer to CIO 199 4
- BTC vs Digita 1,084 29
- Has anyone tried calling HMRC to get tax on dividends put in code? 476 4
- HMRC Joint Filing 553
- Capital Contribution towards a company car 417
- Capital Reduction & Impact on EIS Shares 366
- IRIS and FRS 102 351
- Capitalising Finance Lease 316
- USA help 313
- National Minimum Wage issue on Directors joining a Workplace Pension 291
- Dormant company accounts under FRS 102 285
- Marginal rates of tax 261
- Capital gains on rental property 259