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Back to basics: Tax on the winding up of a company

Paul Howard and Priya Dutta provide your refresher guide.

A company is a separate legal entity and has a life independent of its shareholders and directors. Just because a company ceases to trade runs out of money or becomes insolvent it will continue to exist until it is liquidated wound up informally and struck off the register at Companies House or simply struck off as a result of non-compliance.

In this article we will consider some of the tax issues that the company and its shareholders/directors need to consider focusing on owner-managed businesses (OMBs) when for whatever reason the company is no longer required or is forced to...

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