INS6101 - Cotax

Introduction

When appointed the Official Receiver will not usually file a return but instead provide the District Office with any accounting records available. In these circumstances penalties are not charged.

When a company continues to receive taxable income after the relevant date the District Office will set up subsequent APs to deal with post-insolvency liability. The first subsequent AP starts on the relevant date (the date of winding up) and the liquidator, administrator or administrative receiver (in Scotland receiver) is responsible for

• paying any tax due 9 months after the end of the AP

and

• filing returns, normally 12 months after the end of the AP

Subsequent APs will be created as long as income arises.

Subsequent APs will not be needed if the company does not continue to earn taxable income after a voluntary arrangement.

For company administrations after 15 September 2003, for the effect

• on Corporation Tax see INS3229 and
• on accounting periods see INS3231

Interest

When credit interest has been given, Section 342, 3A of ICTA 1988 states that amounts under £2,000.00 are non-chargeable to Corporation Tax in a liquidation case. Collection and charging of debit interest and late payment interest for insolvency cases is always considered by the Recovery Office.

For further information about a struck off company see ‘Defunct Companies’ INS5000 onwards.