Winding up Company & pulling out remaning retained earnings

[YP]

Hi,

Can anyone advise me on what are the alternatives in of pulling out my remaining retained earnings from the company I am going to wind up.

I have been told I dont need to pull the retained earnings out via dividend - i can pull them out against my CGT allowance for the past 2 years. Is this true which means i dont need pay the extra tax on my dividends.

[AndyLevett]

In most circumstances ESC C16 allows for the distribution to be treated as a formal winding up so that the value can be treated as capital receipts.

You will need to agree this with HMRC before the event by giving a few basic assurances.

[deanshepherd]

Further details can be found here:

http://www.taxationweb.co.uk/businessta ... php?id=115

and here:

http://www.hmrc.gov.uk/specialist/esc.pdf


Dean
dean.shepherd@mmi-online.co.uk
MMI Accountancy
www.mmi-online.co.uk