The quick answer
The usual answer is yes, but I am assuming that ‘payment’ means a payment out to you and therefore you are receiving the money. There are two types of payment paid out of a liquidation. The first type is to shareholders for share capital plus profits and the second is repayment of a debt.
In more detail
In a Members’ Voluntary Liquidation the repayment of share capital above face value is a taxable gain and should be declared on your tax return. The capital gains tax rate you will pay is usually 10% on the first £1 million and 20% thereafter. If you want to find out more about that tax due, and what you will pay you need to look at the rules under Business Asset Disposal Relief.
If you are owed money in a liquidation (and you are usually known as a creditor) then you may get back nothing, something or all of your debt. If this was a trade debt for goods or services, then what you receive should be included in your annual accounts. If you did not get repaid in full the balance can be written off as a ‘bad debt’. Your accountant will know how to treat this.
