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Compliance

What is Strike Off?

Strike off is the process of removing a company from the Companies House register, effectively closing it down.

Current Rate (2025/26)

£10 application fee

Example

Your company has stopped trading and has no assets/liabilities. Apply to strike it off the register.

Key Dates

Must settle all debts first; 3-month notice period

How Strike Off Works in Practice

Striking off is the most common and cost-effective way to close a UK limited company when it is no longer needed. The process formally removes (dissolves) the company from the Companies House register. Once dissolved, the company ceases to exist as a legal entity and can no longer trade, own assets, or enter into contracts.

To apply for voluntary strike-off, the company must not have traded or sold any stock in the last three months, must not have changed its name in the last three months, must not be threatened with liquidation, and must not have any outstanding agreements with creditors (such as a Company Voluntary Arrangement). The application is made on form DS01, signed by a majority of the directors, and costs £10.

Before applying, you must settle all outstanding debts and liabilities, file all outstanding accounts and returns with Companies House and HMRC, close the company bank account, and distribute or dispose of any remaining assets. If the company has assets worth more than £25,000 after paying debts, you cannot use the strike-off route and should consider a Members' Voluntary Liquidation instead, which provides more favourable Capital Gains Tax treatment through Business Asset Disposal Relief.

Once Companies House receives your DS01 application, they publish a notice in the London Gazette giving a two-month notice period. If no objections are received, the company is struck off at least three months from the date of the application. Creditors, employees, HMRC, or any other interested party can object during this period.

Step by Step

The strike-off process follows a specific sequence. First, the directors pass a board resolution to apply for strike-off. The company then notifies all interested parties within seven days of the application: shareholders, creditors, employees, pension fund managers, and any directors who did not sign the DS01 form.

The DS01 form is filed with Companies House along with the £10 fee. Companies House publishes a first gazette notice in the London Gazette. After two months with no objections, a second and final gazette notice is published, and the company is dissolved shortly after.

Before filing the DS01, you must deal with all tax matters. Notify HMRC that the company has ceased trading and file a final Corporation Tax return covering the period up to the cessation date. File a final VAT return if applicable and deregister for VAT. File final PAYE returns and P45s for any employees. Distribute any remaining assets to shareholders (if under £25,000) as a capital distribution, or as income if preferred.

Practical Tips

  • File all outstanding tax returns and pay any taxes owed before applying for strike-off - HMRC objections are the most common reason for delays
  • If your company has more than £25,000 in distributable assets, speak to your accountant about Members' Voluntary Liquidation instead of strike-off to get capital gains treatment
  • Close the company bank account and distribute remaining cash to shareholders before the company is dissolved to avoid assets becoming Crown property
  • Keep copies of all company records for at least six years after dissolution - HMRC can still enquire into past tax affairs

Common Mistakes to Avoid

  • Applying for strike-off before filing all outstanding Companies House returns and HMRC submissions, which will result in HMRC objecting to the dissolution
  • Distributing assets over £25,000 via strike-off instead of using Members' Voluntary Liquidation, which means the distribution is treated as income rather than capital (losing CGT and Business Asset Disposal Relief benefits)
  • Not notifying all interested parties within seven days of the DS01 application, which is a legal requirement and failure is a criminal offence
  • Forgetting to close the company bank account before dissolution - any money left in the account becomes Crown property (bona vacantia)

Frequently Asked Questions

How long does it take to strike off a company?

The minimum timeframe is about three months from filing the DS01 application. This includes the two-month gazette notice period plus processing time. However, objections from HMRC or creditors can delay or prevent the process.

Can HMRC object to my company being struck off?

Yes, and they frequently do. HMRC will object if there are outstanding tax returns, unpaid taxes, or open enquiries. You must bring all HMRC matters up to date before applying for strike-off. File your final CT return, VAT return, and PAYE returns first.

What happens to money left in the company when it is struck off?

Any assets, including cash in the bank account, that are not distributed before dissolution become 'bona vacantia' (ownerless property) and pass to the Crown. You can apply to restore the company to recover these assets, but this is expensive and time-consuming.

Can a struck-off company be restored?

Yes. A company can be restored to the register within six years of dissolution via a court order, or by administrative restoration within six years if the registrar struck it off. However, restoration is costly (typically £500 to several thousand pounds in court fees and legal costs).

Should I strike off or liquidate my company?

If the company has less than £25,000 in assets to distribute to shareholders, strike-off is simpler and cheaper. If there are more than £25,000 in distributable assets, a Members' Voluntary Liquidation is better because distributions are treated as capital gains, qualifying for Business Asset Disposal Relief at 10%.

Source: Companies House DS01 guidance - Apply to strike off and dissolve a company; HMRC guidance on company cessation CTM01150

Related Terms

Dormant Company

A dormant company is one that has no significant accounting transactions during the year. It still exists but isn't actively trading.

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