Jennifer Adams looks at tax implications when a company ceases trading or becomes dormant but still holds cash in its bank account.
Ceasing to trade does not automatically end a company's legal or tax obligations, and where funds remain in the company, extracting them in a tax-efficient manner is often a key consideration for directors and shareholders.
What does ‘dormant’ mean?
Companies House and HMRC define dormancy differently. A company may be dormant for Companies House purposes while still
