Hello,
I am looking to voluntarily strike off a limited micro entity.
The company has more than the personal dividend allowance in the bank, but less than the CGT allowance.
I understand this can be extracted as a capital distribution under 25k, but what is the actual process that needs to be followed?
Do I need to report this somewhere on the final corporation tax return, or is it just a case of filing a return as normal, and emptying the bank account before strike off takes place. I.E. zero vs positive balance sheet?
Many Thanks
Replies (5)
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No it doesn't go on a corporation tax return and also I believe does not need to go on the personal tax return either.
I believe does not need to go on the personal tax return either.
Depends on other capital gains ...
I had assumed that the whole point of the question was that the tax would be lower for a capital distribution since the gain falls within an unused annual exemption.
Make sure that all the creditors are paid, then take the remaining money out of the bank account. 3 months after the company finished trading, you can complete form DS01 for Companies House to apply for the dissolution. It will take 2-3 months for Companies House to go through the process, before it is struck off. This may well now take it into the next tax year.
On your personal tax return, if it is your only capital gain during the tax year, you don’t need to declare it. If you have capital gains that push you past the CGT allowance, then you will need to declare them all. Something to consider ... if you have little/no dividend income, consider declaring a dividend in this tax year and/or next tax year (to use up your dividend nil rate tax band), to pull your overall gains (potentially) back below the allowance.