.png)
.png)
Will a company distribution, including one in kind, be treated as income?
My client is the sole shareholder of a property investment company. He is now in his late 80s and in poor health. He has sold all the properties except one and would like to liquidate the company. The company holds about £1m cash as well as the remaining let property which is valued at about £250 000. In the past he has taken dividends from the company.
If the company were wound up and the assets distributed to him including the property in specie I am concerned about ITTOIA 2005 s 396B.
Will the distribution in specie mean the entire winding-up is treated as an income distribution due to condition C namely carrying on a similar activity? Alternatively will condition D override condition C on the basis that the winding-up was due to retirement? I hope Taxation readers can advise.
Query 18 950 – Investor.
...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
