COM1030 - Accounting periods: company accounting periods: company winding up
This subject is presented as follows
General
Automatic AP changes and Technical Caseworker review
General
An AP ends and a new one begins when a company starts to be wound up. After that an AP ends only at
- The expiry of 12 months from its beginning
- The completion of the winding up
Section 12 (7) ICTA 1988 contains the rules defining the start date of a winding up.
- In any AP after a winding up commences, you may record a self assessment (Word 28KB) before the end of the AP
You should agree the likely completion date of the winding up action with the liquidator, then use Function MAPD (Maintain AP Dates) to amend the AP record to
- Reflect the revised AP
- Set up subsequent APs of 12 months, or a period of dormancy if appropriate
If the winding up is not completed by the assumed date, then
- The AP should end on that assumed date
- A new one begin on the following day
After that, APs should end at the earlier of
- The expiry of 12 months from the beginning of the AP
- The completion of the winding up
These procedures are allowed to apply by Schedule 24 FA 1996.
The Company Taxation Manual (CTM) at CTM36105 onwards contains general instructions on company winding up.
Automatic AP changes and Technical Caseworker review
When a company start to be wound up, the Insolvency Case Handling Unit (ICHU) tells you
- The liquidation date and
- The type of liquidation
An appointed Liquidator may tell you too. You must use Function ACTP (Amend CT Payer Details) to enter the liquidation date onto the record. COTAX will normally
- Automatically supersede the AP into which the Liquidation date falls, setting up a shorter AP to end on the day before that date
- Supersede all later APs, setting up new 12 month APs from the Liquidation date, up to and including an AP ending after the session date
In some circumstances a Technical Caseworker may need to review the AP record following changes made to a case in Function ACTP, for example when a date of liquidation is changed.
COTAX displays screen COT102D in Function ACTP to prompt the Clerical Caseworker to print the screen and pass the case to a Technical Caseworker. The screen print tells you why a review is necessary. You should carry out the review and make any necessary changes to the AP record using Function MAPD (Maintain AP dates).
Notes:
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If you are notified of a liquidation date which is earlier than an administration start date already on the record, COTAX will not allow you to enter the liquidation date. You must use Function ACTP to |
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You should not use Function MAPD instead of Function ACTP to revise a company’s AP structure because of a liquidation date as
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If you come across a case where this has happened you must |
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When a winding up is completed, an automatic data feed from Companies House sends the struck off date to COTAX. The date is automatically entered on the record, the AP structure amended and the case is put onto Work List CRCL (Case Records Changes List) for review. If COTAX is unable to make the change to the AP structure automatically, it will put the case onto Work List AAPR (Amend AP Record) for review.
If the struck off date falls after or within a period of dormancy, COTAX will automatically extend or contract the period of dormancy, as appropriate, to end on the struck off date.
If the struck off date falls after the end of the last live AP, live APs are automatically created from the day after the last AP up until the struck off date.
If the struck off date falls within an AP, then the AP is automatically superseded and replaced with a new live AP from the start of the superseded AP to the struck off date.
For a list of functions to use in particular situations, see COM1021.
For legislation applying to this subject, see COM1022.
