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How to secure capital distribution on winding up

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Hi All,

This is probably quite a simple question, but I have never done it before and want to ensure that I follow the process correctly.

Could you confirm the process I need to follow to get the company struck off and ensure the assets don't go to the crown(!) and it is treated as a capital distribution.
The company is solvent, will have no creditors and total asset value is in cash.

Once I know this, I can do some calculations to check the most efficient way of doing it eg. Dividends, Capital or a combination of the two.

As I say, probably a simple question, but it isn't something I have had to do before with just a sole practice part time.

Thank you for your help.

Replies (9)

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RLI
By lionofludesch
22nd Jun 2019 10:01

How about some numbers ?

How much is in the kitty ?

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Replying to lionofludesch:
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By enoryt010
22nd Jun 2019 10:12

Apologies.
The cash balance will be £130k.

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Replying to enoryt010:
By johngroganjga
22nd Jun 2019 11:52

Then you’ll need a liquidator to get capital treatment.

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Replying to johngroganjga:
RLI
By lionofludesch
22nd Jun 2019 12:43

Absolutely.

Way over the £25,000 threshold.

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By Maslins
23rd Jun 2019 19:19
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Lisa Thomas
By Insolvency Practitioner
24th Jun 2019 09:42

The Company will need to be washed through a Members Voluntary Liquidation.

If the criteria is met the shareholders should be able to claim entrepreneurs relief on the distributions paid out by the Liquidators.

I can help you with an MVL - feel free to contact me for a quote. 01752 786800 [email protected]

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By Vile Nortin Naipaan
24th Jun 2019 10:34

Don't forget the TAAR!

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Replying to Vile Nortin Naipaan:
RLI
By lionofludesch
24th Jun 2019 10:43

No.

Just had a client decide to take a two year holiday for some reason ...

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