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Capital distribution under formal liquidation

Capital distribution under formal liquidation

 Where a company has been struck off under a formal liquidation and distributions have been made on several dates including crossing over the tax year am I correct is stating that these are taxed on the date of receipt ? Also since the distributions are paid at £X per share on the basis that I have a large base cost I presume that  I allocate the cost pro rata based on the proceeds divided by the number of shares ?

 Thanks in advance for any responses.


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24th Jan 2012 15:21

More or less - yes

Hi millertime,

The date of distribution by the liquidator is the date of the CGT disposal for shareholders  - s.122  TCGA 1992

As for your second question; if the shares are pooled for CGT purposes then the base cost will, as you suggest be pro rated.


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