CG40431 - Administration: insolvency: distributions in kind

TCGA92/S17 (1)

The liquidator may distribute assets such as real property, shares and securities andchattels without turning them into cash. When this happens, there is for Capital Gainspurposes

• a disposal by the liquidator of those assets for a consideration which is deemed to be equal to their respective market values
• an acquisition of those assets by the shareholders at the same market values
• a disposal by each shareholder of shares in the company for a consideration which includes the market value of the assets received in kind.