Hi I would like to get advice on how to dissolve a company that has share capital of £200,000.
The company has never traded and has bank balances of approx £200,000 due to the issue of share capital. Can they just withdraw this amount without paying any tax (I assume so because they invested this as share capital but the company never traded?)
Please advise the best way the client could withdraw the money (without paying any tax) and steps to close down the company?
PLEASE DO NOT GIVE ME QUOTES!!! I AM LOOKING FOR ADVICE FOR MY CLIENT.
THANK YOU
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"To be, or not to be, that is the question:
Whether 'tis nobler in the mind to suffer
The slings and arrows of outrageous fortune,
Or to take Arms against a Sea of troubles,
And by opposing end them: to die, to sleep
No more;"
"perchance to dream" was always my favourite bit, but do prefer the stirring bits from Henry V, " We few, we happy few, we Band of Brothers"
What's your basis for this assumption?Can they just withdraw this amount without paying any tax (I assume so because they invested this as share capital but the company never traded?)
Those entries seem about right. It will only attract tax if you don't go through the proper procedure.
No expert but suspect they may need to appoint an insolvency practitioner to liquidate, and pay his fee.
See this:
http://www.rossmartin.co.uk/companies/ceasing-trading/132-ceasing-tradin...
Have never seen a private company issue that value of shares at outset and not proceed, maybe someone else knows a cute way out, but seems t o me they may have taken poor advice at outset.
You obviously haven't come across this new-fangled capital reduction that's all the rage in the big cities south of Hadrain's Wall.
Never done one, though was aware they existed , but like my knowledge of the Loch Ness Monster only as a myth or legend.
The second line refers to Craig Gordon tonight, if they are lucky.
The thing I really appreciate about Coleridge's work is that the poem evokes the never ending travails of the cursed Seaman, which were echoed by us in Ms Wallis' second year English class as we worked our way through the bl**dy piece.
I was really grateful that Coleridge, awakening from his drug induced slumbers, could not remember the entirety of Kubla Khan.
Still, could be worse, Wordsworth's Prelude don't half go on, as does Milton in Paradise Lost, but at least with Milton I actually enjoyed the poem. (He might also have done better in goal than Gordon)
When it comes to verse, I bet you're a fan of Mayakovsky.
http://crimson-compass.tumblr.com/post/56866500409/conversation-with-a-t...
Maybe following encapsulates our current relationship with HMRC re tax planning,
"OF MAN’S first disobedience, and the fruit
Of that forbidden tree whose mortal taste
Brought death into the World, and all our woe,"
Tax technical point
"repayment of share capital is not considered as income distribution (i.e. dividend)". [£25,000 limit is irrelavent in this situation as you are not getting premium] [in other word the distribution is not being made out of retained earnings, therefore not a dividend distribution].
So it will be capital disposal.
Sale proceeds is equal to disposal prceed= nil gain
so no tax.
Procedure
Play safe and follow steps mentioned below.
1)Take out money from company bank account.
2) Make your dormant accounts and e-file to HMRC. In addition attach a covering letter informing them that you are about to strike off the company and confirm that there was no trading activity since when company was incrporated.
3)Fill the form DS01 with £10 fee and send to companies house.
After 3-4 months company will be permanently stuck off from the register.
Make sure u dont leave any money in company's bank account!!!
Job done!