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What's...

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Unpaid Share Capital

We have recently taken on a new company client and shown under current assets on the previous years accounts was £250,000 unpaid share capital.

On discussing this with the client this related to his mother who died some 4 years ealier which is how he came to own the business. The £250,000 actually reduced the mothers IHT liability as we were also shown the IHT forms.

Surely this balance should have been written off or satisfied in previous years? I am now unsure how to treat this during the current years accounts and what to advise the son. Should the son now be paying this liability for instance?

Somewhere in the back of mind I seem to recall that legally share capital have to be satisfied within a certain period of time. Am I mistaken?

Thoughts would be appreciated.