Fixed assets when closing limited company?

[RCentazzo]

Hi all,

I'm one of the directors of a UK limited company. We have recently decided to close our company and we are taking steps before applying for strike off.
I am a bit confused about some of the procedure involved with closing a ltd company and how to deal with assets in my final corporation tax form, so I was hoping to get some suggestions from you. I looked around the forum to find a similar thread but wasn't able to find the same question asked.

We have already closed our bank account (and dealt with all monetary assets) as it was suggested by companies house and we have already terminated payroll.
In our company corporation tax for 2019 we had approximately £5000 in current assets (which at the time was mostly inventory and bank account balance) and £1800 in fixed assets (some office furniture and some tools).

Our company was always only composed by 2 people, the 2 directors. As the assets (such as furniture and tools) will simply return to us (since it was originally our personal propriety), can we simply declare fixed assets and current assets at £0 in our final corporation tax return?

Also we have moved location a couple of times in the last year and left behind or thrown away some of the mentioned furniture/inventory. Do we need to account for that in any particular way?

If the value shown in 'fixed assets' and 'current assets' is not 0, does the crown claim it?

Looking forward to hearing from you, any clarification on this would be greatly appreciated!

 

[Scalloway]

Are you going to use the joint HMRC/Companies House CT600 to file?

 

[RCentazzo]

Are you going to use the joint HMRC/Companies House CT600 to file?

Hi Scalloway!
Thank you for taking the time in reading my questions. The plan was to use the joint process to file.
Luckily the current assets (which was mostly inventory) were dramatically reduced, as inventory was sold or disposed of in the afore mentioned moves.
As mentioned, also the fixed assets have actually reduced a lot since the previous filing as much was thrown away when reducing the size of our storage. Also as far as I can understand depreciation will further reduce this value.
It would be amazing to have a few suggestions to understand this better, even though we are dealing with very very low sums and a very very small company.

 

[Scalloway]

If the value shown in 'fixed assets' and 'current assets' is not 0, does the crown claim it?

In theory yes although the only asset they seem to regularly grab is bank accounts.

The best thing to do is to write off all assets through the Profit and Loss Account then the Balance Sheet will show zeroes.

 

[Spur Support Services]

As Scalloway says you need to write off the assets that are scrapped to zero and consider recognising a small second hand value of any fixed assets which are distributed to the directors, as an asset "sale" value.

When you prepare your CT600 you will add back any profit and loss write off and the sale value when considering the trading profits, but will then add back the "sales proceeds" within the fixed asset allowance section of the CT600. If there would otherwise remain a written down value on the tax pool, you should also claim this as there are longer any assets in the pool.

You may wish to seek advice from your accountant on use of any corporation tax losses or the capital gains aspects of the closure. The former is reasonably easy to research yourself if cash is tight, the latter may not be worthwhile if you are very very small, but I like to be thorough