Dividends from company

kerrick
kerrick Posts: 90 Forumite
10 Posts First Anniversary Name Dropper
edited 27 January 2023 at 4:10PM in Cutting tax
If profits have accumulated as cash reserves could the company cease trading but the directors keep the dormant company, and pay the accumulated profits out as dividends until all cash has been extracted?




Comments

  • Jeremy535897
    Jeremy535897 Posts: 10,699 Forumite
    10,000 Posts Fifth Anniversary Photogenic Name Dropper
    To the extent that the cash is represented by distributable reserves, yes, although there will be the ongoing filing costs.
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