Where the seller is a company and intends to discontinue trading, further problems may arise if the shareholders wish to extract cash from the company. The result will either be an income tax charge on a distribution received by those shareholders, or a charge to capital gains tax on a liquidation, on the basis that they are disposing of their shares to the company at a profit1. The capital gains tax charge will be in addition to any tax already borne by the company in respect of the profits which it
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