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Options to avoid the formal liquidation of a UK company.
We have an Austrian client in his early 70s who returned to his country of birth about five years ago. He owns two UK limited companies which trade at very low levels.
He wants to avoid the administration of one company which has about £3 000 tax losses. The main asset of that company is a debt of £87 000 owed to it by the other UK company which does not have enough funds to repay all of it.
Would disincorporation relief be appropriate in these circumstances and would this dispense with the formal liquidation of the company?
If Taxation readers could provide some advice in this matter this would be greatly appreciated.
Query 19 042 – Hansel.
Reply by Daenerys
Disincorporation relief is a tax relief that will not be available for transfers after 31 March 2018 so a time deadline may be an issue...
