United Kingdom
3 February 2012 - ESC C16 enacted
The former Extra-Statutory Concession ESC C16, dealing with the informal striking-off procedure for companies, was enacted on 2 February 2012 as part of the Enactment of Extra-Statutory Concessions Order 2012.
Despite further lobbying, the limit on the amount of distributions prior to a dissolution which is treated as capital was fixed at £25,000.
This will come into force on 1 March 2012, so any companies still seeking to take advantage of the limit-free ESC C16 must make all relevant distributions before that date.
HMRC has confirmed, in relation to ESC C16 applications made but not finalised before 1 March 2012, that it will "not take a point on the absence of a response by HMRC provided that all the conditions attaching to the current ESC are met. If the distribution is made in February, the distribution can be treated as capital receipts in the hands of the shareholders and the £25,000 ceiling does not apply."
Please contact Jeff Webber to discuss any issues in connection with the enactment of the former ESC C16.