Taxation of liquidating
In general, with regular dividends, on and after the ex-dividend date, a seller is still entitled to the payout even if she/he has already sold it to a buyer.
Essentially, a person who owns the security on the ex-dividend date will receive the distribution, regardless of who currently holds the stock.
Notice also that the saving does not entirely depend on using Jane’s lower rates and exemptions – Steve, who pays higher rate tax on all his gains and income, saves £48,980 by taking a dividend.
Time and time again Tax Insider has come up with the goods!
I wholeheartedly recommend the ‘Tax Insider’ to anyone who is interested in legitimately minimising their tax bill.
This article was first printed in Business Tax Insider in July 2006.
My accountant and I need absolutely accurate and the most up-to-date advice that we can possibly get.
· Finally, the company applies to the Registrar of Companies to be “struck off” the Register of Companies.
Once the Registrar has done this the company is dead – though, like Dracula, it can sometimes be revived if unforseen liabilities appear.
A formal liquidation must be done by a specialised accountant called a “licensed insolvency practitioner”.
It tends to be expensive (not least because in some circumstances a licensed insolvency practitioner can become personally liable to the company’s creditors if he gets things wrong!
In the United States a corporation paying out liquidating dividends will issue a Form 1099-DIV to all of its shareholders that details the amount of the distribution.Tags: Adult Dating, affair dating, sex dating