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An index to our key guides covering how a company can cease trading what options are available when trade has ceased.

When a company ceases trading it can:

The route taken depends on the facts and circumstances of the case. Subscribers click here for your detailed version of this guide.


Striking off 

Striking off is the process in which a solvent company is dissolved and struck off the Companies Register. It is often known as "dissolution".

Voluntary striking off:

See Striking off a company


Liquidation


Remaining dormant


Extracting profits from the company prior to striking off

Purchase of own shares 

See Purchase of own shares/capital reduction checklist.

Dividends


Distributions made on striking off

Distributions made on liquidation

Distributions on winding up: TAAR and Transactions In Securities (TIS)

From 6 April 2016 the the Transactions In Securities (TIS) anti-avoidance rules are extended to catch certain distributions on winding up:

From 6 April 2016 A Targeted Anti-Avoidance Rule (TAAR) was also introduced to target ‘phoenixing’.  Broadly distributions on a winding up will be taxable as income if within two years the individual (or someone connected with them) carries on a similar trade or activity.

This expanded definition and TAAR will not extend to a Distribution on striking off, where the £25,000 limit mentioned above will instead apply.


Company/shareholder toolkits for ceasing trading

Cost effective tools to assist you through complex legislation:

Use the Virtual Tax Partner © TAAR tool to check whether your liquidation dividends are taxed as capital or income.

Use the Virtual Tax Partner © Toolkit to check whether your share disposal (if not affected by the TAAR) qualifies for Entrepreneurs' Relief.


Further advice and assistance?

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