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Hello, I'm Keith and happy to help you with your question.
he taxation treatment depends on the amount received from the liquidators. Under 25K it comes under the CGT regime. Over 25K the whole sum is treated as a dividend, even the first 25K. It's an all or nothing situation. If you were an original investor you might be entitled to Entrepreneur's Relief which would reduce the CGT to a lower 10% rate. If you have gone over the 25K level then this will not apply. For tax purposes CGT and Income Tax apply as at the date of receipt, but rest assured that HMRC will extract the most tax from the situation as they can, especially if the 25K limit is breached..
With the greatest respect you should have sought professional advice before embarking on a voluntary liquidation. It could cost you dear.
Hi entrepreneurs relief is available
The question was could the proceeds be received in two tax years and get two CGT £10600 exemptions Distribution is likely to be £120000
Hi entrepreneurs relief comes under capital gains tax !
under my original question surely there are no dividends but only distributions?
Are you familiar with UK taxes?, not being rude but find your answers difficult to follow.
But many thanks for your help