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

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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:

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

2. Members' Voluntary Liquidation (MVL)

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

  1. Directors make a declaration of solvency
  2. Shareholders appoint a licensed insolvency practitioner
  3. Assets distributed to shareholders (taxed as capital, not dividends)
  4. Final CT600 filed by the liquidator
  5. 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:

  1. HMRC sends notices to the company's registered address
  2. Penalties start accruing — amounts depend on when your filing deadline falls (see below)
  3. If HMRC can't reach the company, they may pursue the directors personally
  4. HMRC can object to the strike-off, keeping the company on the register
  5. HMRC can even restore a dissolved company to the register to pursue the tax debt

Late Filing Penalties

Penalty amounts depend on when the filing deadline falls:

Filing deadline before 1 April 2026: £100 on day one, a further £100 at 3 months (£500/£500 for a third consecutive late return), then 10% of unpaid tax at 6 months and a further 10% at 12 months.

Filing deadline on or after 1 April 2026: The fixed penalties double — £200 on day one, a further £200 at 3 months (£1,000 for a third consecutive late return) — with the same 10%/10% tax-geared penalties at 6 and 12 months.

Capital Distribution on Closure

If distributing remaining assets to shareholders:

  • £25,000 or less in total: The company's distributions can be treated as a capital receipt for shareholders (CGT rates, not dividend rates) under CTA 2010 s.1030A
  • More than £25,000 in total: Usually needs an MVL for capital treatment

The £25,000 threshold is a company-level cap on the total of all distributions made in the course of dissolution — it is not a per-shareholder allowance. For example, if a company distributes £30,000 split equally between two shareholders (£15,000 each), the full £30,000 fails the test and HMRC will treat the payments as dividends, not capital, unless the company goes through an MVL.

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:

  • Tell HMRC your company is dormant. Once notified, HMRC will normally confirm that no CT600 is required until the company becomes active again — a return is only due if HMRC issues you a formal notice to deliver one
  • You must still file confirmation statements with Companies House
  • File dormant company accounts with Companies House (they're much simpler)

Related: trading loss relief on your CT600

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.

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