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Closure of company with outstanding account?

Can you close a company before a business savings bond matures.

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I’d be very grateful for any thoughts on the following. I recently made the decision to wind up my small company....however I opened a one year fixed term business savings bond last summer that still has about 9 months to run. Does that mean I need to wait that long to close the company ie until it matures- or could I do something like put the equivalent sum into the company from personal funds in lieu, to allow me to close the company earlier. Thanks a lot!

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By Paul Crowley
02nd Oct 2020 16:47

Is the bond an asset of company?
Is it in the name of the company?
is the company insolvent?
Why the urgency?

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Replying to Paul Crowley:
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By Tom66
02nd Oct 2020 17:04

Thanks Paul. Yes it’s an asset- a deposit in a business savings bond in the company name. The company is solvent....I’d like to bail out while I can still take advantage of entrepreneurs relief....who knows, but I wouldn’t be surprised if that vanishes in the near future given the forthcoming economic ****show.

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Replying to Tom66:
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By Paul Crowley
02nd Oct 2020 17:18

If it belongs to the company then it is lost if you get company struck off.
Get your accountant to look at the figures

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Replying to Paul Crowley:
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By Tom66
02nd Oct 2020 17:23

Eaten by the taxman you mean? I would have thought it should go back to the shareholders...but that’s a moral not a legal view!

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Replying to Tom66:
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By Cheshire
02nd Oct 2020 17:34

No. The queen gets it.

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Replying to Tom66:
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By Paul Crowley
02nd Oct 2020 17:34

If you get a company struck off any residual assets are lost. Not tax

'What happens to the assets of a dissolved company? When a company is struck off, it ceases to be a registered company and no longer exists as a legal entity. Any property it owns passes to the Crown. This is known as 'bona vacantia'.6 Jul 2020

What Happens to Assets of a Dissolved Company?'
This took 10 seconds to find

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Replying to Paul Crowley:
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By Tom66
02nd Oct 2020 18:10

Haha thanks. Best stick with it then!

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Replying to Tom66:
RLI
By lionofludesch
03rd Oct 2020 07:02

Tom66 wrote:

Eaten by the taxman you mean? I would have thought it should go back to the shareholders...but that’s a moral not a legal view!

What shareholders?

Shareholders of the company?

What company?

The one you struck from the register?

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By I'msorryIhaven'taclue
03rd Oct 2020 10:45

So cash in the bond early and forego the bonus/interest. You might even end up with a bit less then you invested courtesy of management fees, but at least you get to bail early doors and close your company sooner rather than later.

As Del Boy might say, "You know it makes sense".

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Replying to I'msorryIhaven'taclue:
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By Tax Dragon
03rd Oct 2020 00:10

For the record, this is not (dis)investment advice.

Obviously.

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By I'msorryIhaven'taclue
03rd Oct 2020 10:39

Not investment advice, just a possible solution.

The OP wants to wind up ASAP to take advantage of Entrepreneurs' Relief, which he believes might be diminished by the time the company's bond matures. And he's just learnt, courtesy of the panel, about bona vacantia. So, for him to make an informed decision, I thought it worth a mention that cashing the bond early is an option.

It's up to him to make a value call.

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Replying to I'msorryIhaven'taclue:
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By Tax Dragon
03rd Oct 2020 11:05

Lovely jubbly.

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RLI
By lionofludesch
02nd Oct 2020 23:14

Good grief.

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By JeremySilva
03rd Oct 2020 06:35

In an MVL assets can be distributed 'in specie'. That means an asset (normally a property, car or computer equipment etc) can be distributed to the shareholders without having to turn it into cash first. This would save you having to pay cash into the business to buy the bond. The bond would then belong to you personally and not the company.
However, it is one thing to transfer the beneficial ownership of the bond, it might be another to get the bond provider to recognise the change of ownership and pay out direct to you on maturity.

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Replying to JeremySilva:
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By Tax Dragon
03rd Oct 2020 08:11

JeremySilva wrote:

it is one thing to transfer the beneficial ownership of the bond, it might be another to get the bond provider to recognise the change of ownership and pay out direct to you on maturity.

The bond is in the company name. The company ceases to exist in your plan. I rather think legal ownership would therefore need to change. And that resolves the issue you identify.

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By Matrix
03rd Oct 2020 08:25

Halfway down the thread the OP talks about BADR but does not confirm that the conditions have been met. Holding an investment is not trading. I have no interest in determining whether the conditions are met but suggest that the OP does before they rashly cash in the bond.

However I think CGT rates will increase next April and even 20% is low at the moment.

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Replying to Matrix:
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By Paul Crowley
03rd Oct 2020 09:50

CGT even without BADR is a steal
If i were to be advising I would lose BADR and add 7.5% to CGT
Think how much time wasting planning would go to the wall

I did try to suggest get accountant to check in my second post, but on a read back not mentioning BADR made my comment vague

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