The following special rules apply where a company is in liquidation.

Accounting periods

On commencement of the winding-up of a company, the company’s accounting period comes to an end and a new one starts; thereafter, until the completion of the winding-up, each accounting period spans 12 months except that an accounting period ends if a date is agreed with HMRC as a likely completion date. Where a company ceases to be in liquidation without actually being wound up, then the fixed 12-month accounting period rule that is normal from the start of liquidation will cease to apply.

Legislation: CTA 2009, s. 10

HMRC Manuals: CTM36120

In-Depth: ¶802-320

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