Hi again.If the company sells its assets, it will pay corporation tax on the gains.a and b That depends on how much there is to distribute and how the company is closed down. If you go through an informal winding up process and there is more than £25,000 to be paid out to the shareholders, then it has to be paid out as a dividend which is potentially taxable at 32.5% in their hands depending on their personal circumstances. If there is £25,000 or less to distribute, then an informal winding up process can be followed and the cash distributed as a capital sum which then brings the possibility of entrepreneurs' relief into play.If the company goes through a formal liquidation process by appointing a liquidator, then the cash can be distributed as capital. Provided the criteria are met, entrepreneurs' relief may be claimed in which case capital gains tax will be charged at 10% instead of the regular rates of 18%, 28% or a combination of the two depending on the level of the shareholder's other income.Take a look here and here for more information.c Entrepreneurs' relief will be available so long as the qualifying criteria are met. Take a look here for information on ER.I hope this helps but let me know if you have any further questions.
Thank you Tony, much appreciated.