Tax | Liquidations & Insolvency
Transactions involving liquidation and insolvency will often have tax implications, and solvent liquidations (commonly referred to as “members’ voluntary” liquidations) are often utilised in tax-planning structures.
It is important for clients to be aware of the tax issues that can arise and to be advised when it is appropriate for a solvent liquidation procedure to be utilised in order to minimise the tax costs.
We work with other professional firms, including licensed insolvency practitioners and colleagues in our Corporate team in advising on and establishing appropriate structures.
We have advised on the following:
- liquidation demergers, including applying for statutory clearances
- the tax treatment of distributions in the winding up of solvent companies
- the VAT aspects of liquidations and receiverships