A client company's balance sheet consists solely of £50 000 share capital and an overdrawn shareholder/director's current account of £50 000.
Our client wants to get rid of the company but as the company has over £4 000 share capital the normal strike-off route appears risky and a formal liquidation too expensive.
HMRC are pursuing our client for tax under TA 1988 s 419 on the overdrawn current account and have attempted to levy distraint on assets and are now progressing further legal action.
Our intention is to use the new Companies Act 2006 provisions to cancel and repay the share capital thereby crediting the current account and enabling the s 419 tax to be repaid but these provisions are not to be implemented until 1 October 2008.
Has anyone had experience of getting HMRC to agree to withdraw from seeking s 419 tax where the...
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