Jennifer Adams looks at the cost-effective withdrawal of monies from a company on closure.
Getting through the pandemic has been difficult for all, but it will mean closure of businesses for many. Closure may not be because there is no money in the bank account and no more clients on the horizon; some may have just decided to call it a day. Such companies may have accumulated monies or assets that need to be distributed to shareholders on cessation (after all creditors' liabilities have been settled).
The question is - how can that money be withdrawn from the business tax efficiently?
‘Striking off’ the company
Should the company be solvent, and an application is made to 'strike off' the company, then depending upon the amount needing to be,