Dividend C16

[maryma]

My limited company( i was the only shareholder) was struck off last year due to poor upkeep of filing returns etc.I am saddled with a huge dividend of approx £100k .Is it possible to apply for a c16 capital distribution and if not,is there any way off reducing the dividend bill off my personal tax where i am already in the high tax bracket?Any help would be appreciated on this.cheers

[King_Maker]

I assume reinstatement is not an option?

It would be expensive, but less than the income tax liability.

[maryma]

I don't really know much about reinstatement and the circumstances of successfully achieving it.How difficult is it and under what conditions can it successfully be applied?The limited company i previously used was for contracting work.What other options are there to minimise this income tax liability?

[King_Maker]

IIRC, you have to apply to the High Court and do a lot of grovelling.

I don't have any idea of what the current fees would be - £10,000?

[Taxbar]

There are specialist firms that can restore struck off companies cost effectively and fast.

Try Crichtons Solicitors: 0207 504 1299 or @ info@crichtonslawyers.co.uk

Daniel Feingold
STP
info@stratax.co.uk

[King_Maker]

Daniel,

Any idea on fees charged?

Is my estimate close to reality?

[maryma]

Thanks Daniel and King_Maker for your sound advice.Discovered that Crichtons will charge minimum £595 + VAT on company reinstatement depending on individual circumstances.Will seriously consider this route and then apply for C16 as opposed to paying 32.5% of £100k dividend.

[King_Maker]

maryma,

Cost seems very reasonable to me. The last one I was involved with was a few years ago - but the final bill was over £4000,IIRC. The accountant had to pick up the tab.

With the 10% Tax Credit, £25,000 is the extra tax due on a £100,000 distribution.