Death of a company

THE PROCESS FOR striking off unwanted companies has been around for a long time. Nevertheless problems do arise. In this article I shall look at the process of striking off private limited companies explain one major stumbling block and then look at some of the tax stumbling issues. I shall not look at the planning that should have been undertaken before we come to the striking-off because that is another issue altogether.

Extra-statutory Concession C16 explains how the Inland Revenue will apply a concessionary form of treatment when a company is dissolved under sections 652 and 652A Companies Act 1985. Companies House produces a leaflet GBW2 dealing with the voluntary striking-off and dissolution of companies in England and Wales; there is another leaflet GBW(S)2 for Scotland. These are extremely helpful and provide a good summary of the law which is...