wilwak9 wrote:Yes, could be long process unfortunately.
Does anyone know if there any time limits tax-wise for shareholders on how long it takes the liquidators to dispose of the assets and make capital distributions to remaining shareholders?
I have a distant memory of a time limit of three years after liqudation for receiving capital distributions tax-free (I can't find the source yet, but am Googling hard....)
AIUI, capital distributions from a VCT are tax-free, although this allowance/status may only continue for 3 years after liquidation.
The nearest thing I can find at the moment
https://www.gov.uk/hmrc-internal-manuals/venture-capital-schemes-manual/vcm56010There was an article (apparently written in 2014) on taxnotes.co.uk (
http://taxnotes.co.uk/venture-capital-trusts-part-three-how-is-the-vct-structured/ although the site (taxnotes.co.uk) itself seems to have disappeared now but is available via the internet archive at:
https://web.archive.org/web/20190210104247/http://taxnotes.co.uk/venture-capital-trusts-part-three-how-is-the-vct-structured/ and a copy is available at:
https://www.academia.edu/23863237/Venture_Capital_Trusts_Part_Three_How_is_the_VCT_structured)
which may be a bit out of date, but covers this area.
(PS: this query is about ongoing tax on capital distributions during liquidation, it is not about any inbuilt deferred CGT which may come into play on liquidation, which is a separate, but not unrelated, matter).