Distributable profits are the maximum amount of reserves a Company has available to pay to its shareholders as a dividend at any one time. Typically that is the total profits remaining after deducting all business expenses and taxes from income all the years a business has been in existence.
A dormant company is a great way to reserve a name for your business at Companies House, but it does have filing requirements and there are penalties for missing them. Read this guide for a detailed overview of the requirements.
In this guide, I’ll show you how to calculate corporation tax using an easy-to-follow example, along with where you can find more resources on how to reduce your corporation tax bill using allowances, reliefs and other adjustments.
If you own a Limited Company and, for whatever reason have decided to stop trading and made a tax loss in your final accounting period, then you may be able to use the rules of corporation tax loss relief to generate a tax refund.