Commentary

D1.914 Company liquidations—chargeable gains consequences

Corporate tax
Corporate tax | Commentary

D1.914 Company liquidations—chargeable gains consequences

Corporate tax | Commentary

D1.914 Company liquidations—chargeable gains consequences

The passing of a resolution to wind up a company or the appointment of a liquidator, administrator or receiver does not in itself give rise to a disposal for capital gains purposes, either by the shareholder (in respect of the shares in the company1) or by the company (in respect of its assets2).

For capital gains purposes the assets are still deemed to belong to the company, and even where the company's assets are vested in a liquidator, they are still regarded as if they were vested in the company3. Hence a liquidator is treated for all capital gains tax purposes as a nominee or bare trustee for the company within TCGA 1992, s 60. A company is not treated as leaving a capital gains group when it goes into liquidation4.

The passing of a winding-up

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