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Overview

The following guidance note provides details of queries raised on the extract of profit on the winding-up of a company in the last few years in the Readers’ Forum section in Taxation magazine with a link to the full replies. It should be noted that the response to the queries is at a point in time and all relevant legislation should be confirmed as being currently applicable.

BADR on property owned by a liquidated company

We represented a husband and wife partnership which started trading in 1988. In March 1991 the property from which the partnership traded and had previously rented was purchased from the landlord solely in the husband's name. In September 2000 when the partnership needed additional finance, the ownership of the property was changed so it became owned 50/50 between the husband and wife. The loan and new loan were in joint names from this date.

On 1 April 2009 the partnership's