Overview

Under current Revenue practices it is possible for a company to be dissolved and return its funds to its shareholders as capital, potentially saving shareholders significant amounts of tax.

The Finance Bill 2012 proposes that this informal practice, contained in extra-statutory rconcession ESC 16, be placed on a statutory basis. Unfortunately, the proposed statutory enactment incorporates some changes from the current extra statutory concession which would place shareholders at a disadvantage.

This briefing from Shoosmiths outlines the normal process under ESC 16, how the new statutory provision will differ to this and the effect the new rules will have on share capital on liquidation.

Click 'View Briefing' to read on.