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Originally posted by TheCyclingProgrammerView Post
When you close down a company, any shareholder funds left after final dividend distributions are distributed as capital. Assuming the shareholders paid a nominal amount for their shares (£1) and the company has reserved profits, they have made a capital gain personally, subject to CGT. Yes, you have a separate allowance for capital gains - around £12k IIRC. The rate of CGT you pay depends on whether or not you are eligible for ER or if not, whether or not you are a basic rate payer.
thanks for the explanation. Perhaps I've never consciously considered it as MyCo is unlikely to have such funds to distribute which would use up the allowance. But I guess any actual liability will be explained to me when I do actually close my company.
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