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Filing dormant accounts

Trying to file dormant accounts but need help with assets

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Hi,

I created a business a few years ago but after trying to make a go if it couldn't generate the work. The company hasn't traded for years and is dormant. I loaned the company 6000 to buy a piece of equipment and on my annual returns the account marks down a fixed asset of 6000 and a creditors falling outside of 12 months of the lid for 6000. I am looking at closing the company down but can I on the tax return can I reduce the asset and creditors to 0 meaning the company has no debts or assets. Once at that point can I close the account?

thanks

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ALISK
By atleastisoundknowledgable...
17th Jun 2020 06:33

Yes

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Scalloway Castle
By scalloway
17th Jun 2020 07:31

What I would do is get the company to transfer the asset back to me in satisfation of the debt. If the company is struck off before this happens the asset belongs to the Crown as bona vacantia.

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Replying to scalloway:
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By Tax Dragon
17th Jun 2020 07:57

I think (assuming no other factors) that's what I'd do too. It means waving goodbye to possible personal tax relief and/or could potentially trigger tax in the company (proceeds > TWDV) though given trade has ceased probably not. Depends what the numbers really are. On those stated, there's not much to worry about, I wouldn't have thought.

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