Taxation logo taxation mission text

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

New queries, issue 4535

26 January 2016
Issue: 4535 / Categories: Forum & Feedback

Divorce proceedings; Gain on letting; Pension liability; VAT or not to VAT?

Divorce proceedings

How to deal with proceeds of the sale of a rest home on divorce.

A client company traded for many years as a small rest home until it ceased in January 2015 and the residents were transferred. The accounts for the year to 31 March 2015 have been finalised and the balance sheet amounts to an asset (the home) of £100 000 and reserves of £100 000. The property is worth about £350 000 and the couple that ran the home and held the shares equally are divorcing. I would like to consider the liquidation of the company to release the proceeds from the sale of the home for distribution in the divorce settlement. My questions are as follows.

First would it be best to sell the home before the liquidation process starts? This is likely to create a tax liability on the gain of...

If you or your firm subscribes to Taxation.co.uk, 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 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon