Ceased Limited Company

Ceased Limited Company

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If a Limited Company with say 18k in the bank ceases trading and there is no directors loan account balance how do the shareholders get the money out?

Do they take it as dividends? If so surely this would screw up the CT comp as this would affect the ct due?

Or would the shareholders pay it persoanlly?
Simon Jeremy Lewis

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By mattdavid
22nd Feb 2005 16:56

MVL
A solvent liquidation (members voluntary liquidation) casn be used to extract money from non-trading companies.

This also has the advantage that it limits the timescale for contingent liabilities as compared to having a company struck off.

There has to be a declaration of solvency prior to the liquidation.

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By AnonymousUser
21st Feb 2005 10:36

Watch Bona Vacantia
The £18k represents what? If undistributed profits, no problem. If, on the other hand, a significant amount is 'tied up' in share capital there is a problem - only companies trading as a going concern are entitled to purchase their own shares. If, for example, the £18k were represented by £18k of shares then the funds revert to the Crown.

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By NeilW
20th Feb 2005 22:57

Close it down
When you close down a company, you draw up final accounts on a close down basis and pay corporation tax on those accounts.

The monies that are left are then either paid as dividends, or the compnay is 'struck off' the register using the shutdown procedure. At this point the Revenue may give you a concession allowing you to take the assets in the company as a capital gain. Obviously this is beneficial if you haven't used your capital gains tax allowance in the tax year.

NeilW

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By User deleted
21st Feb 2005 09:45

Striking off
Something to be aware of is that once the company is struck off, the bank account will be frozen. You will be warned about this by Companies House, but for the amount of money you indicate, I should get organised and withdraw it either as a dividend or as the proceeds of a capital gain.

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