Joe Brough looks at tax issues for business taxpayers and their tax advisers when a company is coming to an end.
Owner-managers can spend a significant amount of time and energy building a successful and profitable trading company.
Whilst this article looks at where tax advisers can assist ensuring that profits are extracted in a tax-efficient manner over the company’s life, it is equally important that business owners do not fall at the final tax hurdle when the company is eventually dissolved.
Capital treatment on solvent liquidation
Where there are withdrawals of profits from a company which are not taxable as salary or benefits-in-kind, the starting point is that these distributions are subject to income tax as dividends.
For capital treatment to apply, the company will need to be dissolved, either by way of a liquidation by a
