Written by the TaxTune Editorial Team · Reviewed by our qualified accountants · Updated for 2026
The quick answer A solvent company with few assets is usually closed by striking off, filing a DS01 with Companies House once debts and tax are settled. Where more money is left in the company, a members voluntary liquidation can allow the funds to be taken as capital, often at a lower tax rate than dividends.

How to close a solvent company, step by step

  1. Stop trading and settle up. Pay off debts, collect what you are owed, and deal with any employees and their final pay.
  2. Finalise the tax. File final accounts and a CT600, pay the corporation tax, and close down VAT and PAYE schemes.
  3. Take out remaining funds. Distribute what is left, considering whether capital or dividend treatment is better.
  4. Apply to strike off. File a DS01 with Companies House. The company is removed after a couple of months if no objections.

Striking off or liquidation?

For small balances, striking off is simple and cheap. Where larger reserves remain, a members voluntary liquidation lets you take the funds as a capital distribution, which can qualify for lower capital gains tax rates and Business Asset Disposal Relief, often saving tax despite the liquidator's fee. The right route depends on how much is left.

Closing with money still in the company?

The way you extract the final funds can save thousands in tax. TaxTune reviews your position, chooses the most efficient route, and handles the closure and final tax.

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We settle the tax, file the final accounts and returns, advise on the most tax efficient way to take out what is left, and handle the strike off. Fixed fee.

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Frequently asked questions

How do I close a limited company?

A solvent company with few assets is usually struck off by filing a DS01 with Companies House, after settling debts and tax. Companies with larger reserves may use a members voluntary liquidation.

What is the most tax efficient way to close a company?

Where significant funds remain, a members voluntary liquidation can let you take them as a capital distribution, often taxed at lower capital gains rates and possibly with Business Asset Disposal Relief.

Do I have to file final accounts?

Yes. You must file final accounts and a CT600, pay any corporation tax, and close your VAT and PAYE schemes before the company is removed.

How long does striking off take?

After filing the DS01 and clearing objections, a company is usually removed from the register within around two to three months.

Can I close a company that owes money?

Not by simple strike off. An insolvent company must be dealt with through a formal insolvency process, and you should take advice before proceeding.