.png)
.png)
The implications of the new draft legislation on distributions in close company liquidations.
KEY POINTS
- A draft clause 18 in Finance Bill 2016 will introduce a new ITTOIA 2005 s 396B on distributions to shareholders in a winding-up.
- For a close company being wound up for the avoidance or reduction of income tax after 5 April 2016 distributions received by a shareholder will be treated as dividends chargeable to income tax.
- A family business wishing to remove their activities from a close company structure needs to consider whether to time any distributions pre- or post-6 April 2016.
- Changes to the transactions in securities (TIS) provisions take effect from 6 April 2016 but the existing provisions continue for the remainder of this tax year.
- HMRC has indicated that where a business is succeeded by a shareholder(s) who then trades as a sole trader...
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.
