Capital Distribution

Last Updated December 2015

Government are set to introduce new legislation in April 2016 which will reclassify the disposal of shares on the winding-up of a close company as a dividend rather than a capital gain where, within two years after the capital distribution, the shareholder continues to be involved in a similar trade or activity and one of the main purposes of dissolving the company is to obtain a tax advantage. 

Need assistance with your particular circumstances?

For help understanding these changes and how these affect you, please contact one of the team on +44(0) 208 735 6370.