Last weeks Finance Bill 2016 gave more detail of the changes to the taxation of company distributions — an area which was ominously foreshadowed for reform in the 2015 Autumn Statement, writes David Whiscombe, partner at tax advisory BKL.
Although the following analysis is based on the only limited HMRC guidance available so far and the bills proposals (which may be changed before passing into law), it is clear that these changes will impact the way in which the proceeds received by a shareholder on the liquidation of a company will be taxed.
Who is potentially affected?
Any individual receiving a distribution on a winding-up of a company. This includes a contractor who is the sole employee and company director winding up their PS…
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