New guidance has been issued by Companies House when voluntarily shutting down, winding up or dissolving a limited company, known formally as ‘striking off’.
The company being dissolved should:
The director(s) of the limited company must:
Application to dissolve
An online dissolution form can be submitted to Companies House or a paper form DS01 can be used. Companies House will then make an announcement in the relevant Gazette. This will either be the London Gazette, the Belfast Gazette or the Edinburgh Gazette. After 2 months, assuming no intervention or objections, the company is dissolved.
When distributing remaining capital and retained profits, if this is below £25,000 it will be taxable as dividends, if more it will be taxable as capital gains tax and may then attract entrepreneurs relief.