CheckLists.Tax (beta)
B2. Sale etc. by a company
INCOME TAX
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Trading income
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- Identifying trading receipts
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XX
Legislation:
Cases:
HMRC manuals:
Commentary:
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Sale to shareholder
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- Sale at undervalue giving rise to distribution
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General rule
- Sale at undervalue by UK resident company to member is a deemed distribution (CTA 2010, s.1000(1)(G)).
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Reversal of inadvertent distribution
- HMRC accept that if there was no intention to make a distribution + the parties made reasonable efforts to avoid one, an inadvertent distribution may be reversed.
- Two methods:
(1) Member agrees to pay the difference.
(2) Transaction reversed entirely.
- Further conditions explained at CTM15295, including the need to have obtained independent valuation.
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Legislation: CTA 2010, s.1000(1)(G);
Cases:
HMRC manuals: CTM15295;
Commentary:
See also:
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Transfer of assets abroad
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- Disposal of asset to non-resident person by closely held company as a relevant transfer
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- The TOAA rules apply to a relevant transfer by a closely-held company in which an individual has a qualifying interest (ITA s.720A).
- Only applies to income arising on or after 6 April 2024 (FA 2024, s.22(10)).
- See further i1. Creation and addition to trust.
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Legislation:
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CAPITAL GAINS TAX
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Non-resident company gains attributed to participators
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- XX
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XX
Legislation:
Cases:
HMRC manuals:
Commentary:
See also:
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CORPORATION TAX ON CHARGEABLE GAINS
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Group relief
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- XX
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See G11. Intra-group transfer.
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Legislation:
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HMRC manuals:
Commentary:
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