Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hi. My name is*****'m looking at your question now and will post my answer or ask for more information here in a short while.
You only have to go through a formal liquidation if you wish to withdraw the cash as a capital payment, claim entrepreneurs' relief and pay CGT at 10%.
If you don't go through a formal liquidation, you will have to withdraw the cash as a dividend to the extent that it represents undistributed profits. Whilst you may pay some income tax at 7.5% on some of the dividend, some will be taxed at 32.5% if your total income exceeds £50,000 in the current tax year.
Take a look here for more information.
An alternative would be leave the cash in the company and draw it out over a longer period so as to minimise the income tax liability.
I hope this helps but let me know if you have any further questions.
Would you mind rating my answer before you leave the site please.