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UK-Justice
UK-Justice, Barrister
Category: Law
Satisfied Customers: 16193
Experience:  Called to the Bar in 2007
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I have a loss making company which I wish to close. No trading

Customer Question

I have a loss making company which I wish to close. No trading has been carried out for over a year.

I have around £10,000 of macinery assets which are registered to the company. To purchase those I injected personal cash into the company.

Can I retrieve the machinery assets from the company before closing it so that they become my personal property?
Submitted: 4 years ago.
Category: Law
Expert:  UK-Justice replied 4 years ago.
Thanks for your question, I will do whatever I can to help you. Please remember to rate my answer SMILEY FACE OR ABOVE.

Does it show as a Directors loan?
Customer: replied 4 years ago.

Where would I see that? On the Final Accounts?

Expert:  UK-Justice replied 4 years ago.
It should be on the accounts.

In any event it only really matters if anyone is going to object.

On the basis you have not traded for 12 months you can safely apply to dissolve the company.

Once the company is dissolved then the assets become the property of the shareholders.

I assume you are only shareholder and therefore it becomes your property.

I hope this reassures you.



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Customer: replied 4 years ago.

I read on the Government website that assets of closed companies become the property of the HMRC.


 


This was the cause of my concern.

Expert:  UK-Justice replied 4 years ago.
Assets generally become property of the Crown.

But as I said you should transfer the assets back to you to wipe out any debt the Company owes you.

So you can still dissolve and transfer the assets to you.

I hope this helps.




Please remember to click *** OK SERVICE *** or above so that I am credited for my time. The question does not close and you can ask follow ups.

Important: If you feel the need to rate as one of the lower two scores, it counts as negative feedback so please reply to me via the REPLY with any further questions you may have. I will be happy to assist you further.
Customer: replied 4 years ago.

This is my last question.


 


How do I transfer?


Do I have to invoice myself with a value of £0.00 or pay the company a nominal fee?


 


Information on how to transfer would be warmly received.

Expert:  UK-Justice replied 4 years ago.
Well in reality no one is going to object.

It only needs to be a paper transfer. So you just have a contract for sale and say that by you having the plant it wipes any debt owed by the company to you.

That's it really.


Please remember to click *** OK SERVICE *** or above so that I am credited for my time. The question does not close and you can ask follow ups.

Important: If you feel the need to rate as one of the lower two scores, it counts as negative feedback so please reply to me via the REPLY with any further questions you may have. I will be happy to assist you further.
UK-Justice and 2 other Law Specialists are ready to help you
Customer: replied 4 years ago.

Thanks for your help.

Expert:  UK-Justice replied 4 years ago.
Welcome
Expert:  UK-Justice replied 4 years ago.
I'm just following up with you to see how everything is going. Did my answer help?

UK-Justice