Closing down ltd company - capital distribution

[roguesurfer]

I'm closing down my limited company after only 6 months of trading. I'm being told by an accountant that I can't take the money left in my company as a capital distribution as I've only being trading for 6 months. Is this true? I've looked on the IR website and can't find this ruling? Am I being taken for a ride? Any info would be good.

Cheers

[Technically Blonde]

Not aware that this is a requirement. You must close the company and not start a same / similar business. As far as I recall that is the only requirement. Why not call the IR helpline and ask them? Sometimes they know what they are talking about

[roguesurfer]

Thanks

Thanks I'll give them a call.

[XLMonkey]

you have to have been trading for 2 years or more for the capital distribution relief to apply, so after 6 months you won't qualify. If you search the HMRC website for Capital Distribution then it will pop up the relevant guidance.

[Mailman]

Meh, pay everything out as a divi then close the business at the end of the financial year! Problem solved

Mailman