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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3671
Experience:  Solicitors 2 years plus PQE
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if I am shareholder of a company. then company goes into liquidation.

Resolved Question:

if I am shareholder of a company. then company goes into liquidation. new company offers me a same share . when actually sell shares can I account for cost incurred in old company against price I have received from new company?
Submitted: 3 years ago.
Category: Law
Expert:  Alex J. replied 3 years ago.
Hi,

Thank you for your question and welcome.

My name is XXXXX XXXXX I will assist you.

You cannot force the new company to accept what you have proposed.

The old company is a distinct legal entity and your payment for the shares represents the limit of your liability to that company on liquidation. The share capital would be paid to the creditors of the company, it would only be returned to you if the company was solvent on liquidation.

Kind regards

AJ
Customer: replied 3 years ago.


sorry you have not answered the other part of question. it relates to capital gain tax. when I sell shares in new company. can I still use cost incurred in old company? the price I paid originally to acquire shares?

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

No you cannot. You might be able to claim a relief if you have a suffered a loss and you make a capital gain on the new shares.

Kind regards

AJ
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