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Wind up for short lived company

is capital distribution still available?

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I have a client who formed a company 30 Jan 2020, and I am drawing up the one and only set to 31st Jan 2021.  The trading was for about 9 months within that period.

For the balance of £20k can we take that as a capital distribution despite the short lived period of this?

For some reason my brain seem to think that is blocked and becomes a dividend, but possibly going mad as I can’t find out why I think that, I may be getting confused about the winding up without a liquidator over £25k.

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Lone Wolf
By Lone_Wolf
17th Feb 2021 18:04

You can't claim BADR, but I don't see why the distribution wouldn't be capital. I take it you are going to be striking off the company?

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Replying to Lone_Wolf:
By ireallyshouldknowthisbut
17th Feb 2021 18:24

Yes a strike off. 20% tax beats 32.5%

Probably just going mad. Having a very bad day, everything seem to be going wrong today.

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By Wanderer
17th Feb 2021 18:23

Are you maybe thinking about the TAAR? That's a situation when a capital payment can become an income payment.

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Replying to Wanderer:
By ireallyshouldknowthisbut
17th Feb 2021 18:25

probably. I really really need a pub night tonight. Doh.

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