Winding Up The Cost

The CIOT has warned that Small firms face a much more costly process of winding up their companies after Parliament approved a measure which will impose significant additional burdens on some small companies. The Enactment of Extra-Statutory Concessions Order 2012, passed on Monday afternoon by the House of Commons First Delegated Legislation Committee, gives legislative effect to six extra-statutory concessions (ESCs), including ESC C16, which deals with the tax treatment of distributions to shareholders when a small company is dissolved. Andrew Gotch, Chairman of the CIOT’s Owner Managed Business Sub-Committee, said: “It is extremely disappointing that the Government have chosen not to listen to the concerns of the tax profession and small business and have pushed this measure through.”