More an Any News than Any Answers.
Just received a newsflash from CCH that, from 14 October, the Treasury Solicitor has withdrawn the concessiony £4K share capital sum by which a company can repay its share capital to its shareholders without Charles & his Mum knocking on the door with the 'evies.
So advice is to reduce the company's share capital to a nominal £1 before going for strike off, under chapter 10 Cos Act 2006.
No doubt connected with the proposed £4K limit for capital distribution under ESC C16 (new).
The thought does cross my mind that if I went ahead without the above change, would one of The Windsors actually pop around and, if so, when I got a signature or ID how much could I get for it on Ebay?
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This came up in a thread recently
https://www.accountingweb.co.uk/anyanswers/question/esc-c16-14-october-2011
The inference I'd drawn from the Treasury Solicitor's press release is that they would not be taking any action, regardless of the amount of share capital distributed, unless a disadvantaged creditor came forward with a claim.
The inference is mine though. No such thing is explicitly stated in the press release.
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Joking aside, I was wondering about this, given a lot of businesses have £100 in share capital, are they really going to go after this in practice? And if so by what mechanism? There is no point in dancing about complying with a technical rule that is not enforced.
I know its not that hard to cancel them, but I do wonder how they will approach what must be 1000's and 1000's of small co.s being struck off the register every year without advice of any sort who have £100 of share capital.
Edited to add - thats what happens when the phone rings! Ignore me.
More advice
I reported this several weeks ago in my web-update, and I have some pretty good guidance on this on my site - clieck on Companies > Ceasing trading, if you are interested.
You will need a capital reduction in the future (more guidance on this too on my site), but I think that once accountants get into the swing of this it will not be such a big deal,
The big deal is that HMRC will be withdrawing ESC C16 - I expect news later in the Autumn and so the Treasury Solicitor had to drop its concession.
Virtual Tax Support for accountants: www.rossmartin.co.uk