We have a client who has ceased trading and now is in the fortunate situation to have monies in the bank of £800k which is met by the share capital of £800k.
They have cleared all liabilities and now wish to remove the monies however with no reserves available we are stuck as to how this would work, against the share capital.
Any ideas would be great?
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The ICAEW Tax faculty have just today issued this guidance
Hopefully you will find this helpful http://mail.icaew.com/cgi-bin5/DM/t/hCNJ30XoeoN0YAL0KkO20EB
Reduce share cap
Rockallj's link is welcome (for which thanks).
I had a similar situation last year and went through the share reduction process mentioned in the ICAEW note (using really good docs downloaded from Simply-docs) and all went well.
I only had to get it down to £4K but now would make it £1 and would suggest that the shareholder now leave a pound coin under the front door mat in case the Treasury Solicitor called around.