Readers’ forum: The long game

An individual and his spouse have retired and over many years had traded through a number of separate limited companies (incorporated and owned in equal shares 50/50). The companies are now dormant but £50 000 of cash and reserves were left in each company in case funds were needed in the event that a decision was taken to recommence trading.

Having decided to retire completely the married couple would like to withdraw funds from the companies in the most tax efficient way possible.

Can a dormant company pay dividends to reduce the cash balance to £24 000? At that stage could the company be struck off voluntarily with the remaining £24 000 being treated as a capital distribution?

The point is if this exercise is repeated for each dormant company in turn over a number of tax years how...