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Our limited company client owns a portfolio of residential properties let to various unconnected tenants. In February 2005, it then emerged from a 15-year period of administrative receivership. This was purely because it had cross guaranteed another associated company's borrowings and, as part of the liquidation process of that company, the bank insisted that this company should be put into administrative receivership; no call was made on the guarantee.
Our limited company client owns a portfolio of residential properties let to various unconnected tenants. In February 2005 it then emerged from a 15-year period of administrative receivership. This was purely because it had cross guaranteed another associated company's borrowings and as part of the liquidation process of that company the bank insisted that this company should be put into administrative receivership; no call was made on the guarantee.
We now see that the corporation tax returns prepared by the receivers for the administration charged the company's profits to corporation tax at the full rate. This is incorrect as the profits of the company for all of the years involved are at the level chargeable at the small companies rate and indeed were within the starting rate for corporation tax for all of the years since the starting rate was introduced. The company is not a close...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
