Capital reduction in a closed company

Can surplus cash be paid using simplified capital reduction process?

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A closed company has excess cash and there is share premium on the balance sheet. Can the company follow the 2006 simplified process to pay out cash and reduce the share premium ? If so, I presume it will be treated as repayment of capital and there be will be no tax liability for reciepients.  

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RLI
By lionofludesch
05th Nov 2018 13:15

"Closed company" or "close company" ?

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Replying to lionofludesch:
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By Raj Rudran
05th Nov 2018 14:39

Apologies. Typo.

Should read "close company".

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By Ruddles
05th Nov 2018 14:45

I'm not even going to hazard a guess as to the tax outcome given the utter lack of relevant information.

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