Fiducia TogetherClosing a company
Ending a company you no longer need. Two routes, with different tax.
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.
What it means
A solvent company can be struck off voluntarily, or wound up through a members' voluntary liquidation.
Why it matters
Striking off is cheap and simple. An MVL costs more and can allow reserves to be distributed as capital rather than income, which matters where the reserves are substantial.
What it looks like in practice
Striking off requires the company to have not traded or changed name in the last three months, and creditors must be notified. Distributions above a threshold on striking off are treated as income.\n\nAny assets left in a struck-off company pass to the Crown.
What to watch out for
Bank accounts closed before the money is out. And the targeted anti-avoidance rule, which can treat a capital distribution as income where the owner starts a similar business within two years.
Where to get proper advice
Your accountant. and an insolvency practitioner for an MVL.
Where to read more
Last reviewed 2026-08-28 by Fiducia Together · Next review due 2027-08-28
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.