COM23180 - Assessing: CTSA assessments: self assessments by companies in liquidation
This subject is presented as follows
Self assessment before the end of the AP
COTAX action
Company in compulsory or creditor’s voluntary liquidation
Self assessment before the end of the AP
S342(5) ICTA 1988 (as modified by Para 12 FA 96) allows a liquidator to self assess the profits of a company in liquidation, before the end of an AP, when the expected date of completion of the winding up falls on or after 1 July 1999. General guidance is available on this subject in the Company Taxation Manual (CTM) at CTM01520 and CTM36105 onwards.
You can accept an informal return, such as a letter or written statement, from the liquidator to finalise the company’s liability in advance of the company's formal winding up. See the ‘Returns / Notices’ business area for more information about handling informal returns.
Although from 1 April 2011 the submission of almost all company tax returns has to be through CT Online for APs ending after 31 March 2010, mandation does not apply to companies in liquidation. You may therefore continue to accept paper or informal returns for these companies, but you should note that solvent companies being wound up under a members’ voluntary liquidation are not exempt from online filing.
If you accept an informal return in the form of a letter, you need to identify the boxes and amounts that would have been completed if the liquidator had used a form CT600 before you can log and capture the figures.
You cannot insist on a formal return before the statutory filing date (Word 42KB). However, it will be normally more practical - for liquidator and HM Revenue & Customs alike - to have a formal return where the liquidator needs to make positive entries in the self assessment (Word 28KB). You should recommend that to the liquidator unless all the entries on the return would be ‘Nil’.
Liquidators can obtain a CT600 return form by downloading one from the Internet at www.hmrc.gov.uk. Alternatively, they can submit one electronically through CT Online.
COTAX action
If a date of liquidation is present on the COTAX record for a company, you can log and capture a return, and record a self assessment, before an AP has ended. Use Function DAPD (Display AP Details) to check if a date of liquidation is recorded and that it has updated the company’s AP record then set the e-filing exception signal to ‘Y’ in Function ACTP (Amend CT Payer Details). Note: only do this if the company is insolvent. Solvent companies being wound up under a members’ voluntary liquidation are not exempt from online filing.
If you record the self assessment before the rates and fractions have been set for one of the Financial Years, COTAX will apply the rates and fractions for the previous Financial Year.
Company in compulsory or creditor’s voluntary liquidation
When a company is in liquidation because of a compulsory or a creditor’s winding-up order, HM Revenue & Customs is unlikely to receive payment towards any outstanding CT debt.
However, if the liquidator delivers a paper return, process it and record the self assessment. If the liquidator does not deliver a return, do not make a Revenue Determination (Word 29KB) unless you know of a specific liability for the AP.
For a list of forms relevant to this subject, see COM23011.
For a list of functions to use in particular situations, see COM23012.
For legislation applying to this subject, see COM23013.
