Page 31 - P6 Slide Taxation - Lecture Day 6 - Groups, Interest And Practice Questions

Implications: Normal tax relief

provided for the liquidating company

• The transferor is deemed to have disposed of

a capital asset at base cost, and an allowance

asset or trading stock asset at tax value.

• The tax effect is that the transferor does not

realize a recoupment, capital gain or trading

profit.

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