Distribution under ESC C16
I have been reading the threads on the changes to ESC C16 with interest. I have a client who closed his business at the end of December, notified Companies House and got approval from HMRC to have the remaining cash treated as a capital distibution. I then advised him to withdraw the funds before 1st March (the amount involved is about £60k). He now tells me that he put the funds on 3 month deposit back in January and he cannot withdraw the money until early April. As the bond is for £50,000, he cannot withdraw early, even for a fee. Is there any way he can avoid having the distribution treated as one of income?