Limited company not needed - dissolving- but dividend or redundancy to extract funds?

Posted by bha PM | on Thu, 02/09/2010 - 23:49 764 1 comment | report

Small limited company - one director - only asset is a small cash balance company has ceased trading for three months, HMRC advised that final accountsCompanies House form 652a s completed and forwarded to Companies House

But how to take cash out ?

Obviously a dividend is possible but might a redundancy and ex gratia payment to director be possible?

I dont think redundancy is possible as the director is a controlling shareholder, sole director and has never taken a salary or dividend. Any considerations to the redundancy route?

Comments

Capital Gain

essex accountant | Fri, 03/09/2010 - 07:13 | Permalink

Providing it is a trading company then treat as a capital gain, probably covered by the £10,100 Annual Exemption. You should make a claim under Extra Statutory Concession C16. This can be found at: http://www.hmrc.gov.uk/specialist/esc.pdf The last time I used this I was asked a few extra questions, but nothing very difficult.