My client is a small one director company that ceased trading in December 2013. All company tax returns have been submitted by 2/7/14. We are about to apply to strike it off to Companies House. All creditors have been paid off, and there are no assets to distribute apart from cash in the bank of £10k.
Under the new rules I believe the director can take this cash as a capital distribution. Does this have to be reported anywhere? It is unlikely that the director will have any other capital gains in 2014/15.
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Yes that's right. Just pay
Yes that's right. Just pay the £10,000 to the shareholder(s) and strike the company off. The distribution will be capital. It does not need to be reported anywhere except possibly the 2014/2015 tax returns of the shareholder(s).