Apply for a Discretionary Grant (DG2)
How to apply for a discretionary grant where the dissolved company can be restored. (Company has been dissolved for less than six years)
Applies to England and Wales
Overview
Cash and other assets of a dissolved company automatically pass to the Crown as Bona Vacantia by law under Section 1012 of the Companies Act 2006. The Bona Vacantia Division (BVD) of the Government Legal Department is responsible for this function.
The Discretionary Grant application enables sums of money to be recovered without making an application to restore the company to the Companies Register. A maximum limit of £3000 can be recovered and only one grant payment will be made in respect of each dissolved company.
All grants are discretionary. No-one has a right to a grant.
Who can apply
You must be one of the following in order to be eligible for a Discretionary Grant:
- Former shareholders provided all shareholders of the dissolved company apply and there are no existing creditors of the company.
- Former liquidators
- Former administrators
- Former company voluntary arrangement (CVA) supervisors
Additionally:
- A grant will only be made if the applicant undertakes not to restore the company in the future. If you are intending to restore the company, please click here: https://www.gov.uk/guidance/apply-for-a-repayment-after-a-company-has-been-restored-to-the-register-cb4
Deceased Shareholders
If you are acting on behalf of a deceased shareholder, you will need to provide a sealed copy of the Grant of Probate or Letters of Administration.
Dissolved Charities
A Discretionary Grant can be issued to another charity/non-profit organisation which has similar objectives. This is known as a recipient charity. A written confirmation from the Charity Commission for England and Wales will be required confirming that there are no objections to a Grant being made to the recipient charity.
Dissolved Community Interest Companies
A Discretionary Grant can be issued to an asset locked body named in the constitution of the company. BVD will conduct the necessary checks on the asset locked body to establish whether it is legally able to receive the grant. A written confirmation from the Office of the Regulator for Community Interest Companies will be required. If an asset locked body is not named in the dissolved company’s constitution, BVD will contact the regulatory body upon receipt of the application. The grant cannot, under any circumstances, be issued to an individual.
When to apply
A Discretionary Grant can only be processed once BVD have received the unclaimed funds of the dissolved company from the asset holder. If you are unsure of your closing balance or if this has been sent to BVD, you should contact your bank or respective institution acting as the asset holder.
What it will cost
An administrative fee of £300 will be deducted from the balance that constitutes the grant. If BVD hold a balance of £300 or less, a grant cannot be made. Where the remaining balance exceeds £750 following the deduction of this administrative fee, a 5% reservation fee will be applied. The reservation fee is retained in order to protect the Crown in the future from any potential creditors of the company. Example:
Applying for a balance of £2300:
Administrative fee deduction: £2300 - £300 = £2000.
Figure exceeds £750, therefore the 5% reservation fee is applied:
£2000 – (5/100 x £2000 = £100)
Discretionary Grant to be paid: £1,900.
How to apply
You will need to submit the following documents as part of your application:
- A completed DG2 application form and undertaking(s)
- A certified copy of ID proving your name (e.g. passport)
- A certified copy of ID proving your residential address (e.g. utilities bill or bank statement issued in the last 3 months)
If there were multiple shareholders in the company at the time of dissolution, the application should include the certified copies of ID documents along with a signed undertaking for each shareholder. A list of valid ID documents accepted by BVD is available here: https://www.gov.uk/government/publications/proof-of-identity-checklist
Certification
Prior to submitting your proofs of ID, they will need to be certified as being true copies.
If you live in the UK, this can be done either by:
- Document Certification Service provided by the Post Office
- A practising Solicitor
The person certifying the documents must sign and date them and must state their full name, business name, business address, and their status.
If you live outside of the UK:
- A Notary Public registered in your country of residence
- A British Embassy, Consulate or High Commission
- Courts or Justice Ministry services in your country of residence
Translation
If you are supplying certificates and identity documents in languages other than English please note that BVD reserve the right to request a certified English translation of each document.
DG2 Application & Undertaking Forms
The DG2 application form comprises of two parts, the application and an undertaking. As an applicant, you will be required to complete both parts. If there were multiple shareholders within the dissolved company, each will have to complete the Undertaking part of the application ONLY.
Submit
Applications should be submitted to BVD electronically. Please send all applications together with the certified copies of identity documents as PDF or JPG attachments by email to the following address: submit.dg2@governmentlegal.gov.uk
Contact and enquiries
Bona Vacantia - Cash Balance
Government Legal Department (BVD)
1 Ruskin Square
Croydon
CR0 2WF
Email bvcbt@governmentlegal.gov.uk
Switchboard 020 7210 4700
Please use this email address for all enquiries relating to the cash assets of dissolved companies.
Alternatively select option 1 when calling the Cash Balance Team
Last updated 22 March 2024 + show all updates
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Updated department address.
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Minor wording correction.
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Updated document certification requirements.
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Clarification of the acceptable formats for ID documents.
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Clarification of required (certified) documentation.
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Amendment to submission content.
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Update to the DG2 Application and undertaking form.
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Minor correction to the DG2 form.
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Essential amendments to current guidance and associated forms
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Amendment to the application for a discretionary grant guidelines.
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Change to contact address for submitting forms.
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First published.