The legalities of closing a business will apply if you relinquish ownership of a company. This section lists the help and advice available any time you sell or close down a business.
EXITING A BUSINESS: There are legal requirements to consider if you exit your business. Some of your responsibilities will relate to:
There are several reasons why people relinquish their ownership in business. Some common reasons include selling it or passing it on to a family member.
In some cases, the intention may be closing the business for good. But, in others bankruptcy may be the only option available.
The information in this guide relates most to selling a business or closing it down. You can also find details on stopping self-employment. There is extra help and advice on winding up your business or liquidating a limited company.
CGT FOR BUSINESS: Producing a profit (gain) on company assets can create liabilities of Capital Gains Tax for business. An example could be selling or disposing of an asset that is part of the business.
BONA VACANTIA: There are several ways of recovering assets from a company in dissolution. Find out how to claim money or property from a dissolved company.
COMPULSORY LIQUIDATION: Winding up a company is usually the last resort to recover money owed to you. Check how to serve a petition and what forms you need to wind up a company that owes you money.
CGT ENTREPRENEURS' RELIEF: Claiming Entrepreneurs' Relief can reduce the amount of Capital Gains Tax that you pay. It can lower it to 10% on all gains when you sell or dispose of qualifying shares.
WINDING UP A COMPANY: There are key aspects to consider if you liquidate your limited company. See how liquidation works, be it compulsory or voluntary, and the role of a director and a liquidator.
CLOSING DOWN: The legal responsibilities of selling a business or closing it down are numerous. Check what duties you have if you sell your company, sole trader business, or a partnership.
Legalities of Closing a Business in the United Kingdom