This Content Was Last Updated on November 5, 2015 by


Back in January we wrote about the conversion of Extra Statutory Concession C16 – ESC C16 – into law, and a unhelpful £4,000 restriction being placed on it.

The draft Finance Act 2012, released in the last few days, increases the £4,000 restriction to £25,000 – not completely helpful but better than it was.

Over that amount the only way of accessing favourable Capital Gains Tax treatment on closing a company is to use a formal liquidation – which is considerably more expensive, by several thousand pounds.

Quite whats behind HMTs thinking on this unclear – all the same reliefs are available, they are just more difficult to access driving fees into the hands of Insolvency Practitioners – who, confusingly, also do solvent liquidations.