u/Luminosia

Hi, I'm looking for some advice on an unusual situation with closing my Ltd company and the £25,000 strike-off limit for capital treatment/BADR.

I was the sole director and employee of my Ltd company. I stopped trading in February 2026~ and intended to close the company using the informal strike-off route rather than an MVL.

My understanding at the time was that I could distribute up to £25,000 and have the final distribution treated as capital, potentially qualifying for Business Asset Disposal Relief (BADR).

The timeline is:

• February 2026: stopped trading.
• March 2026: distributed approximately £24,500 from the company to myself. This was intended to be the final distribution and was below the £25,000 limit.
• I then discovered HMRC had an unallocated amount of approximately £1,000 belonging to the company.
• June 2026: HMRC refunded the £1,000.
• There is now another £80 Corporation Tax credit showing on the HMRC account, which I intend to request as a refund.
• The company bank account was closed after I received the 1k refund as I thought that was everything. Some family matters came in the way so didn't get round to going to submit the DS01 today until I saw

If I simply add everything together, the total eventually extracted would be:

£24,500 + £1,000 + £80 = £25,580~

So I'm concerned that this takes me over the £25,000 limit.

My questions are:

1. Does the later receipt of the £1,000 HMRC refund and £80.00 Corporation Tax refund count towards the £25,000 limit if the original £24,500 distribution was made in March 2026, before the refunds were received?
2. Could the March £24,500 distribution still qualify for BADR at the 14% rate, given that it was made before 6 April 2026, with the later HMRC refunds being dealt with separately?
3. If the later refunds do take me over £25,000, does that mean the entire £24,500 loses capital treatment, or can only the excess be treated differently?

Thnanks for the help

Hi, I'm looking for some advice on an unusual situation with closing my Ltd company and the £25,000 strike-off limit for capital treatment/BADR.

I was the sole director and employee of my Ltd company. I stopped trading in February 2026~ and intended to close the company using the informal strike-off route rather than an MVL.

My understanding at the time was that I could distribute up to £25,000 and have the final distribution treated as capital, potentially qualifying for Business Asset Disposal Relief (BADR).

The timeline is:

• February 2026: stopped trading.
• March 2026: distributed approximately £24,500 from the company to myself. This was intended to be the final distribution and was below the £25,000 limit.
• I then discovered HMRC had an unallocated amount of approximately £1,000 belonging to the company.
• June 2026: HMRC refunded the £1,000.
• There is now another £80 Corporation Tax credit showing on the HMRC account, which I intend to request as a refund.
• The company bank account was closed after I received the 1k refund as I thought that was everything. Some family matters came in the way so didn't get round to going to submit the DS01 today until I saw

If I simply add everything together, the total eventually extracted would be:

£24,500 + £1,000 + £80 = £25,580~

So I'm concerned that this takes me over the £25,000 limit.

My questions are:

1. Does the later receipt of the £1,000 HMRC refund and £80.00 Corporation Tax refund count towards the £25,000 limit if the original £24,500 distribution was made in March 2026, before the refunds were received?
2. Could the March £24,500 distribution still qualify for BADR at the 14% rate, given that it was made before 6 April 2026, with the later HMRC refunds being dealt with separately?
3. If the later refunds do take me over £25,000, does that mean the entire £24,500 loses capital treatment, or can only the excess be treated differently?

Thnanks for the help