Company Dissolution & Strike Off: Do You Still Need to File a CT600?

Yes. Closing your limited company doesn't remove your obligation to file a final CT600. Here's what you need to know.

The Closure Process

There are two main ways to close a limited company:

1. Voluntary Strike Off (DS01)

The simplest route for solvent companies with no significant assets:

Stop trading
Settle all debts, close bank accounts
File final accounts with Companies House
File your final CT600 with HMRC
Apply for strike off (form DS01)
Company dissolved ~3 months after gazette notice

2. Members' Voluntary Liquidation (MVL)

For companies with assets above £25,000 to distribute:

Directors make a declaration of solvency
Shareholders appoint a licensed insolvency practitioner
Assets distributed to shareholders (taxed as capital, not dividends)
Final CT600 filed by the liquidator
Company dissolved

Your Final CT600

Your final CT600 covers the period from the start of your accounting period to the date you stopped trading (cessation date).

Key Points

The accounting period ends on cessation date, not your normal year-end
You must file within 12 months of cessation
Tax is due 9 months and 1 day after cessation
Include all income up to cessation date
Claim terminal loss relief if applicable (carry back up to 3 years)

Common Mistake: Filing Too Early

Don't file the strike-off (DS01) before filing your final CT600. If the company is dissolved before HMRC processes your return, you can get into a mess with phantom tax demands.

Correct order: File CT600 → Pay any tax → Then apply for strike off.

What Happens If You Don't File?

If you dissolve without filing your final CT600:

HMRC sends notices to the company's registered address
Penalties start accruing (£100, then £200, then 10% of estimated tax)
If HMRC can't reach the company, they may pursue the directors personally
HMRC can object to the strike-off, keeping the company on the register
HMRC can even restore a dissolved company to the register to pursue the tax debt

Capital Distribution on Closure

If distributing remaining assets to shareholders:

Under £25,000: Can be treated as a capital distribution (CGT rates, not dividend rates)
Over £25,000: Usually needs an MVL for capital treatment
The £25,000 limit applies per shareholder

Capital treatment is often more tax-efficient than dividends because of the annual CGT exemption and lower CGT rates.

Dormant Companies

If your company never traded or has stopped trading but you want to keep it on the register:

You must still file CT600s (showing nil figures)
You must still file confirmation statements with Companies House
File dormant company accounts (they're much simpler)

Related: dormant company filing guide

Related: confirmation statement guide

Closing your company? File your final CT600 with Taxpipe — £59, and we handle the tax calculation for your final period.

Company Dissolution & Strike Off: Do You Still Need to File a CT600?