COM130050 - Returns / notices: notices and returns: creditors liquidations

In a creditors' voluntary liquidation the company is insolvent and the shareholders have decided to wind it up. A meeting of the creditors confirms the appointment of a liquidator.

In a compulsory liquidation the court makes a winding up order on the petition of an unpaid creditor, or certain others. The company is usually insolvent. The court may in the first instance, appoint a provisional liquidator if there is a risk that the directors of the company will dissipate its assets before the winding up petition can be heard in full. A provisional liquidator is also sometimes appointed, for technical reasons, to an insolvent insurance company.

A provisional liquidator may be either

• A licensed insolvency practitioner

• The Official Receiver

A provisional liquidator remains in office until a liquidator is appointed following the making of an order to wind up the company.

When appointed the liquidator will not usually make a return on behalf of the company for the period up to the date of the winding up order. He should however, provide any of the company’s records in his possession for examination.

In many of these cases, it is unlikely that HMRC will receive any additional payment of CT from the company.

The following approach is therefore recommended

• Continue to issue a notice to deliver (Word 29kb) unless the company is dormant (Word 28kb). Use Function MAPD (Maintain AP Dates) to record the dormant period
• Do not insist upon the receipt of audited accounts, as their preparation is unlikely. Accept a Statement of Affairs instead
• Accept an informal return, by way of a letter or written statement, rather than a completed form CT200 or CT600. See the ‘Assessing’ business area for advice on dealing with informal returns
• Do not pursue late filing penalties in respect of returns for periods up to the date of winding up

Note: The liquidator has to deliver returns for periods ending after the commencement of the winding up. You should pursue any penalties for late returns made, or to be made, by a liquidator.

For guidance on liquidations where a case is under enquiry or investigation see the Enquiry Manual.

For a list of forms relevant to this subject, see COM130011.

For a list of functions to use in particular situations, see COM130021.