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Winding up - Personal Tax Implications

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    Winding up - Personal Tax Implications

    Hi

    After running myself as a contractor through a ltd. company for eight months, I currently just joined a company as an employee and want to cease trading as a ltd co. I have about £18k left in the company bank account after everything is cleared off to distribute. I am trying to see how to access this and wind the company up - my accountant is just doing the paperwork and doesn't seem able to offer any advice.

    Ideally I would like to have the money paid out to me and treated as a capital gain. I have about 15k of capital losses to offset as opposed to the funds being treated as income tax or dividends as I'm going to be a higher rate taxpayer this year. So personal tax implication appears to differ from nil (if treated as CGT) or 40% of £18k (if treated as income tax)

    My limited company was in operation for less than 12 months so I'm not sure if this affect my options available to me but read there are two ways of winding up as solvent. One is MVL & the other one is a voluntary strike-off …looking for anyone's advice on what is the best thing to do or maybe I have no option?
    Last edited by knowsey; 19 May 2021, 16:12.

    #2
    You want to do a strike off. Not a liquidation.

    There's a thread elsewhere on this forum that shows for a small amount like that you can do a capital distribution, without any TAAR implications, and don't need a liquidator.
    If you google it you get this Striking off a company - RossMartin.co.uk

    See You Next Tuesday

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