Corporation Tax Act 2009 section 12

Companies being wound up

Section 12 sets out how accounting periods are determined when a company enters winding up, including when periods begin and end, and what constitutes the start of a winding up.

• When a company begins to be wound up, the current accounting period ends immediately before the winding up starts, and a new accounting period begins at that point.
• After winding up starts, each accounting period ends at the earlier of 12 months from its start or when the winding up is completed; if the winding up is not yet complete, a new accounting period begins immediately after the previous one ends.
• The winding up is treated as starting when the company passes a winding up resolution, when a winding up petition is presented (provided no resolution has already been passed and a winding up order is subsequently made on that petition), or when an equivalent act is done under legislation other than the Insolvency Act 1986.
• These rules are self-contained for companies being wound up, meaning the general accounting period termination events in section 10 do not apply; however, other provisions of the Corporation Tax Acts may override the timing if they specify different start or end dates.