COM130160 - returns / notices: notices and returns: members voluntary liquidations

In a Members’ Voluntary Liquidation the company is solvent but the shareholders have decided to realise and distribute the company’s assets and wind it up.

Generally, you do not treat companies in Members’ Voluntary Liquidation differently from any other active company. The company usually prepares audited accounts, and has the funds to meet its CT liabilities.

Take the following approach

• Issue notices to deliver (Word 29KB), unless the company is dormant (Word 28KB). If this is the case use Function MAPD (Maintain AP Dates) to record this
• Pursue receipt of a return, unless the company was dormant throughout the specified period (Word 27KB)
• Accept management accounts, or other information in that style as part of the return, if you can settle the liability without receiving formal accounts
• Accept an informal return, such as a letter or written statement from the liquidator, when the liquidator is seeking to finalise the company’s liability in advance of the company's formal winding up. See section ‘CT Pay And File Assessments’ or ‘Revenue Determinations’ in business area ‘Assessing’ for more information on making an assessment or a Revenue Determination (Word 29KB) in informal return cases
• Charge penalties for late filing unless the company gives a ‘reasonable excuse’ for its failure. For more information see subject ‘Reasonable Excuse’ (COM100100) in the ‘Penalties’ business area

Note: You should deal with any application to exercise the provisions of Extra Statutory Concession C16 (ESC C16) (Word 27KB) in accordance with the information contained in the Company Taxation Manual (CTM) at CTM36220 onwards.

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

For legislation applying to this subject, see COM130012.