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.
ADMINISTRATION: One of the rescue options for insolvent limited companies is entering administration. Learn how to put a company into administration what happens after appointing an administrator.
GETTING A CVA: A limited company with debt problems can use a Company Voluntary Arrangement to recover from insolvency. Check how to apply for a CVA and how the process may be an alternative to liquidation.
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 yours down are numerous. Check the duties you would have if you sell your company, sole trader business, or a partnership.
END SELF-EMPLOYMENT: There will be a number of organisations to notify if you stop being self employed. Use the checklist to find out who to tell and what to do if you stopped being self-employed.
MERGERS: The Competition and Markets Authority can investigate a business merger to ensure fairness. You can read CMA2 for further guidance on the merger control regime.
Legalities of Closing a Business in the United Kingdom