Closing Ltd with < £25k net assets

Dividend and not CGT in a winding up

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Would others agree that for a Ltd looking to strike itself off under the Companies Act and which has < £25k net assets, S1030A CTA 2010 treats the 'dividends' as capital payments AND that the new 'distributions in a winding up' rules (i.e. treat as dividend if start similar trade within 2 years etc) being introduced from 6/4/16 DO NOT APPLY as they only apply to a liquidation?

The above relies on the term 'winding up' meaning liquidation only and not including striking off.

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By Hugh Jarssis
12th Aug 2016 12:11

Yes.

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Replying to Hugh Jarssis:
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By geroge
12th Aug 2016 13:20

Thanks Hugh, my difficulty is finding the definition of 'winding up' - do you happen to know where it is defined?

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Replying to geroge:
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By Hugh Jarssis
12th Aug 2016 13:29

"Wimding up" is an expression used in the 1986 Insolvency Act, and it is what everybody in fact means when they refer to a liquidation. It does not include a striking off, which is a Companies Act procedure whereby a company is removed from the register without being wound up.

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By geroge
12th Aug 2016 12:20

Of course title should be 'CGT and not dividend in a winding up' and not 'Dividend and not CGT in a winding up'.

However, I cannot see an option to edit posts?

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