Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Twin-track terminus

24 January 2012 / Mike Truman
Issue: 4338 / Categories: Comment & Analysis , Business , Income Tax
The uncertainty about bona vacantia and claiming ESC C16 treatment when a company is struck off will soon be over, says MIKE TRUMAN


  • ESC C16 is converted into legislation from 1 March 2012.
  • Need to prevent income tax treatment of distributions.
  • Bona vacantia limit of £4 000 lifted in October 2011.

Time is running out if you want to use extra statutory concession (ESC) C16. It will be replaced for payments after 1 March 2012 by a statutory provision which will have a £25 000 cap.

If you have not quite got your head around this yet that is not surprising – there have been many twists and turns recently in the story of distributing the assets from companies that are about to be struck off.

One of the main problems for following developments is that they have been running along two separate but related tracks: the application of ESC C16 to obtain capital treatment for...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon