Capital gains on liquidation distributions: shareholders taxed on received money or asset market value reduced by assessed dividend. Distribution of a company's assets on liquidation is not regarded as a transfer by the company; instead, a shareholder who receives money or other assets ... Summary
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Capital gains on liquidation distributions: shareholders taxed on received money or asset market value reduced by assessed dividend.
Distribution of a company's assets on liquidation is not regarded as a transfer by the company; instead, a shareholder who receives money or other assets on liquidation is chargeable to income-tax under the head Capital gains on the money received or the market value of assets on the distribution date, reduced by the amount assessed as a dividend, and that resulting sum is deemed the full value of consideration for capital gains purposes.
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