CG53076 - Substantial shareholdings exemption: the substantial shareholding requirement - effect of liquidation
TCGA92/SCH7AC/PARA16
Paragraph 16 Schedule 7AC TCGA 1992 applies where the investing
company, or a member of its group, is in liquidation. It makes it
clear that although the assets of a company in liquidation vest in
the liquidator the company is still, for the purposes of
establishing whether the substantial shareholding requirement is
met, treated as the beneficial owner of those assets.
So in the example at CG53074, if the subsidiary company went
into liquidation then, for the purposes of Part 2 of Schedule
7AC,
- it would continue to be treated as if it were the beneficial owner of the shares it held,
- it would continue to be treated as if it were entitled to the distributable profits and assets that went with those shares,
- it would continue to be treated as if it held the holding company's shares, and enjoyed the rights attached to those shares, and
- the holding company would continue to be treated as if it held the subsidiary's shares, and enjoyed the rights attached to those shares.
