Taxes Consolidation Act 1997 section 570

Company in liquidation

Section 570 provides that, for capital gains tax purposes, a liquidator's actions in relation to company assets are treated as the actions of the company itself.

• Where company assets vest in a liquidator (whether under section 614 of the Companies Act 2014 or otherwise), the capital gains tax legislation applies as if the assets remained vested in the company.
• Any acts of the liquidator in relation to those assets are treated as acts of the company, so that chargeable gains or allowable losses arising are gains or losses of the company.
• The transfer of assets from the company to the liquidator on vesting is not regarded as a disposal by the company or an acquisition by the liquidator.
• The words "or otherwise" ensure the section also covers cases such as a voluntary liquidation where the liquidator applies to the court for a formal vesting order.