Winding up Ltd Co...

[fatmcgav]

Evening all

I'm currently looking at what options I've got to wind up my Ltd Co.

Have been trading just under 18 months, and my one and only invoice has just been paid, giving me just under £11k to sort out.
Removing CT, that leaves me £8,800 profit...

I'm currently a higher rate tax payer as a result of day job, therefore I don't think dividends is the right option for me.

Section 1030a has come up on various Google searches, which if I'm understanding it correctly means I should be able to dissolve the Ltd Co, and pay 0% Capital gains tax as i'm under the threshold.

Thanks in advance for any replies.
And I haven't currently got an accountant as I've been doing this as a side project which has been going in for nearly 12 months...

Regards
Gavin

[jamesbrown]

Yes, as of 2012, if the assets are below 25k (they are), you can have the company struck off and the amount distributed as a capital distribution, subject to CGT, to which your annual allowance applies. For amounts above 25k (not applicable here), you must either take a dividend distribution or a formal liquidation through an MvL, followed by a capital distribution.

[fatmcgav]

Yes, as of 2012, if the assets are below 25k (they are), you can have the company struck off and the amount distributed as a capital distribution, subject to CGT, to which your annual allowance applies. For amounts above 25k (not applicable here), you must either take a dividend distribution or a formal liquidation through an MvL, followed by a capital distribution.

Cool, cheers for the confirmation.

Gav

[Jessica@WhiteFieldTax]

Yes, you are on the right lines, understanding is correct re CT and CGT on dissolution.

There is a guide to closing down a company on my firms web site - https://www.whitefieldtax.co.uk/web/...t-of-contract/ - (admin, remove this if it breaks rules)

Broadly:

~ file some accounts and CT600 with HMRC
~ pay CT
~ close PAYE and VAT registrations if applicable
~ close business bank account before DS01
~ apply for strike off at Companies House with DS01

I wouldn't worry about accounts for Companies House if its a strike off, but if you want to, you may need to change accounting reference date to fit in with what you send to HMRC.

HTH