Closing down company

[xoggoth]

Cheers. Not another CT return, just driven mad by last one!!!

[xoggoth]

I expect the final balance sheet has to balance to 0.000001p or they make you go back and do all the 20 years accounts again.

[ntronic]

If you wanted to be fancy on the question of being dissolved, you could mention that this would be under the Companies Act 2006 s1003 (previously Companies Act 1985 Section 652A).

I would make some mention of the fact that the application is being made under ESC C16.

You might mention that the company will not transfer or sell its assets to another company that has some or all of the same shareholders as yours and that the company is not involved in a scheme of reconstruction.

You should mention that the final CT return will be submitted ASAP.

The template letter mentions that you will distribute (or have already done so). You can distribute at any time and hope for the best but IMO you should NEVER do this in advance of HMRC cearance.

If you distribute today and ESC C16 is repealed before you get HMRC clearance the distribution doesn't escape just because it was made before HMRC came back to you.

At best, they might argue it was a loan to a director with a 25% tax charge to the company, or they might argue it was salary liable to PAYE & NIC.

Get the application in ASAP, they usually come back to you within 2 or 3 weeks and sometimes quicker. You can then distribute knowing you have got capital treatment.

You should also be OK to qualify for Entrepreneurs Relief on the distribution and hence the effective 10% tax rate, after deducting your annual CGT exempt amount, if it is still available, provided the figure involved is not huge.

Thanks Taxless for your taking the time to post. Your tips have been extremely helpful. I believe I now have what I need to make an application, so here goes. Will keep you posted if I do run into any trouble.
And thanks to the others for chipping in as well.

[thanos]

Thanks Taxless for your taking the time to post. Your tips have been extremely helpful. I believe I now have what I need to make an application, so here goes. Will keep you posted if I do run into any trouble.
And thanks to the others for chipping in as well.

If you have an asset in the ltd co say a laptop, can we sell it to the director ie myself at a discount price?