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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
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Corporation tax: Recovery of debts from ceased companies

Strike-off and Dissolution

Where a company has been struck off the Companies House Register and dissolved, it no longer exists. No further action to recover the debt is possible whilst the company remains struck-off / dissolved.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000) DMBM725000(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Actions after strike-off and dissolution

There may be circumstances where further recovery or enforcement proceedings might be required after strike-off / dissolution but such cases are likely to be the exception. The company must first be restored to the Companies House Register before any action is taken. As restoration is a costly and lengthy process, there must be demonstrable benefits of taking restoration and further recovery action.

Any funds / assets of the company, including any credits held by HMRC, whilst it remains struck-off / dissolved are ‘bona vacantia’ (ownerless goods). Further guidance on Bona Vacantia can be found in the Library.

Care should be taken about disclosing information about the company if contacted by the former directors / shareholders, as since the company no longer exists they have no authority to deal with the company’s affairs.

Notice of Intention to Strike Off

Prior to strike-off, a notice of intention to strike off will be issued and noted on the Companies House register. Unless an objection is made the company will be struck off the register not less than 3 months later.

COTAX receives the date of the notice of intention to strike off and worklists the case for review by the assessing / processing office.

The assessing / processing office may object to the strike-off if there is an outstanding liability. This is to allow further time to recover the debt.

An objection may be made for other reasons, such as if the case is under enquiry. The COTAX note should state the reasons for the objection.

If an objection to striking-off is made because of the outstanding liability you should consider all recovery options available.

Ceased companies: not struck off

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000) DMBM725000(This content has been withheld because of exemptions in the Freedom of Information Act 2000)