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Closing down a Limited Company and disposing of assets

Closing down a Limited Company and disposing of...

Hi, one of my clients has now stopped trading through his limited company as he is retiring. There are no debts in the company and a healthy cash balance available to settle any final bills (including Corporation Tax). There are 2 shareholders - my client and his wife. The only tangible assets in the company are a few pieces of computer equipment and also some capitalised costs from work that was done on the home office - how should we dispose of these correctly in the accounts? I believe my client will want to keep them all personally, rather than actually sell them, and of course the costs on the home office can't really be sold on......! It's been a long time since I had to do any cessation accounts - any tips please?

Many thanks!

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02nd Mar 2016 13:00

how healthy?

What's the value of the company's net assets?

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02nd Mar 2016 13:34

Around £16.5k, thanks.

Around £16.5k, thanks.

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By JimFerd
02nd Mar 2016 14:42

To dispose of the computer equipment, you just need to dispose of them at their market value at the date he wants them out.

Assuming the home office costs were held in land and buildings and no tax relief has been claimed on them, I would just CR L&B and DR DLA, at the book value.

I'm making a leap of faith that the L&B work isn't actually capable of being sold by itself and is just relatively minor work to the clients home.

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By teekay
02nd Mar 2016 15:08

Bank account

Assume remaining bank balance will be distributed as dividends?

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