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The end is nigh! When it’s best to wind up

By Alan Pink, July 2020

Alan Pink considers the option of winding up a company as tax planning and important points to look out for.

Winding up a company can be by far the most tax-efficient method of extracting value from it. This is what might be termed the central or ‘classic’ problem of owner-managed business tax planning: it’s all very well enjoying the lower rates of tax on profits that operating through a company gives (i.e. 19% corporation tax rather than income tax rates up to 45%) but that leaves unsolved the problem of how you access the funds in the company without paying income tax rates after all.  

In fact, there are many situations where putting your profits through a company, and then extracting them as dividends or remuneration, can actually increase the tax over what you would have paid without the company.  

It’s not your

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