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If the corporation distributes appreciated property, the corporation is taxed on the gain under Code § 311(b).

A corporation issues these dividends if it plans to terminate its business or if it plans to merge with another corporation under a new name.This clause introduces a measure designed so that, if certain conditions are met, distributions received by a shareholder from the winding‐up of a company (and made post-5 April 2016) will be treated as if they are dividends chargeable to income tax in the shareholder’s hands and therefore are chargeable under the new regime for dividends starting in 2016/17.It is worth recalling here that the rates of income tax for dividends received above the £5,000 allowance on or after 6 April 2016 will be: Readers will appreciate that it will not be unusual for the 38.1% rate of tax to apply if the company has accumulated significant reserves.In other words, where the new legislation bites, the maximum tax payable on a liquidation distribution in 2016/17 may be nearly four times that payable on the same payment received by a shareholder in 2015/16.The dividend treatment in s 396B will apply only when a distribution is made in respect of shares and HMRC can demonstrate that three conditions (A to C) are met.

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Full summary » | Full synopsis » Argentina:13 | Australia: M | Austria:12 | Belgium: KT/EA | Brazil:12 | Canada: PG (British Columbia) | Chile: TE | Denmark:11 | France: Tous publics | Germany:12 | Hong Kong: IIA | Ireland:12A | Italy: T | Japan: G | Mexico: B | Netherlands:12 | Norway:12 | Philippines: PG-13 | Portugal: M/12 | Russia:12 | Singapore: PG13 | Singapore: NC16 (DVD rating) | South Korea:12 | Sweden:11 | Switzerland:12 | Taiwan: PG-12 | Thailand: G | UK:12A | USA: PG-13 (certificate #50410)Incorrectly regarded as goofs: When the Enterprise's deflector array is damaged, Kirk orders the ship to go to warp to escape the danger.

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