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How to close Ltd account

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    How to close Ltd account

    Hi,

    I've held my Ltd company account which I used for IT contracting for close to 10 years. What is the most tax efficient (but completely legal) way to close this down please?

    Others I know in the same situation have accountants who have suggested entrepreneurs relief as they would only then pay 10% tax on whatever is left in the company account after bills are all paid.

    My accountant however has said that wouldnt apply as i'm closing the company, not selling it. My accountant has said there would be no tax to pay - but presumably I would have to declare it in some sort of self assessment?

    Can anyone help here? Or suggest a company who would do this best for me?

    #2
    How much is left in aggregate to distribute? If it's less than £25k, then you should conduct a simple strike-off. An MVL is generally only worthwhile for amounts >> £25k.

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      #3
      Originally posted by tails007 View Post
      My accountant however has said that wouldnt apply as i'm closing the company, not selling it. My accountant has said there would be no tax to pay - but presumably I would have to declare it in some sort of self assessment?
      I think you need them to clarify the above. Entrepreneurs relief (or business asset disposal relief as it's now known) certainly can apply with distributing final funds from a redundant company. However if your accountant has suggested there'd be no tax to pay...possibly your company has sub £12k final net assets, so your accountant is happy it will be capital but thinks will be covered by your annual exemption?

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        #4
        Your answer depends on the details of which there are none. We need more info.
        'CUK forum personality of 2011 - Winner - Yes really!!!!

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