Taxes Consolidation Act 1997 section 571

Chargeable gains accruing on disposals by liquidators and certain other persons

Section 571 imposes liability on accountable persons — liquidators, receivers, mortgagees and other holders of security over assets — to pay the capital gains tax or corporation tax referable to chargeable gains arising on disposals they make of a debtor's or company's assets.

• An accountable person (liquidator, receiver, mortgagee or other security holder) who disposes of an asset is assessable to the capital gains tax or corporation tax referable to any chargeable gain arising on the disposal, even though the chargeable person would normally be the debtor or company that owns the asset.
• The referable tax must be paid out of the disposal proceeds as a necessary disbursement, taking priority over charges, encumbrances and preferential creditors.
• Where the debtor or company has other chargeable gains in the same year of assessment or accounting period, the referable tax is calculated using statutory formulae that apportion the overall tax liability by reference to the accountable person's gains relative to total gains.
• The referable tax is recovered by assessing the accountable person to income tax under Case IV of Schedule D; any overpayment is refunded, and any shortfall may be collected from the debtor or company.