Updated October 2026: fees and 2026/27 tax rates checked against GOV.UK and Companies House on 17 October 2026.
Form DS01 is the Companies House application to strike off (dissolve) a solvent UK limited company that has stopped trading. A majority of the directors sign it, it costs £13 online or £18 on paper, and the company is usually dissolved about two months after the notice appears in The Gazette, provided nobody objects.
Striking off is usually the cheapest way to close a company. It isn't always the most tax-efficient. If the company still holds more than £25,000 after paying its debts, a members' voluntary liquidation (MVL) may leave you with more after tax. Both routes are explained below.
DS01 at a glance (2026/27)
- Who can use it: a company that hasn't traded, sold stock or changed its name in the last 3 months, isn't threatened with liquidation and has no arrangement with creditors (such as a CVA).
- Fee: £13 online (debit or credit card) or £18 on paper (cheque or postal order, not drawn on the company's own account).
- Signatures: a majority of directors (2 of 2, or 2 of 3).
- Notify: send a copy to shareholders, creditors, employees, pension trustees and any director who didn't sign, within 7 days of applying.
- Timetable: Gazette notice → 2 months for objections → second notice → company dissolved.
- Tax on what's left: up to £25,000 in total can be taxed as capital (CGT, possibly BADR at 18%). Above £25,000, the whole amount is taxed as a dividend unless you use an MVL.
What is a company strike off?
Striking off removes the company from the Companies House register, after which it no longer legally exists. It's also called voluntary dissolution. It's intended for solvent companies with simple affairs that have stopped trading and have nothing left to do except close.
Once the company is dissolved:
- its bank accounts are frozen, and you can't send or receive money;
- anything left in the company passes to the Crown (bona vacantia), including cash, property and any later HMRC refund. You'd have to restore the company to recover it.
So deal with every asset, and close the bank account, before you apply.
Can my company use form DS01?
You can apply only if, in the last 3 months, the company has not:
- traded or carried on business (other than winding up its affairs);
- sold off stock;
- changed its name;
and it is not:
- threatened with liquidation, or subject to insolvency proceedings;
- party to an agreement with creditors, such as a Company Voluntary Arrangement.
If it doesn't meet these conditions, you'll need to liquidate instead. If the company becomes ineligible after you apply, such as by starting to trade again, you must withdraw the application.
How to strike off a company with DS01: step by step
| Step | What to do | When |
|---|---|---|
| 1. Stop trading | Cease business and deal with stock, contracts and staff (redundancy rules, final pay, close the PAYE scheme). | At least 3 months before applying |
| 2. Settle tax and debts | Pay suppliers and HMRC. Deregister for VAT if applicable. | Before applying |
| 3. Final accounts and CT600 | Prepare final statutory accounts and the final Company Tax Return, stating they're the final trading accounts and that the company will be struck off. File with HMRC (you don't have to file final accounts at Companies House). Pay all Corporation Tax. Consider terminal loss relief if the last year made a loss. | Before applying |
| 4. Distribute assets | Pay out the remaining cash to shareholders (see tax below), transfer domain names and other assets, and close the bank account. | Before applying |
| 5. File DS01 | Online via Companies House "Close a company" (£13), or the paper DS01 (£18). A majority of directors must sign. | |
| 6. Notify interested parties | Send a copy of the application to members, creditors, employees, pension managers/trustees and any non-signing director. Failing to do so is an offence. | Within 7 days of filing |
| 7. First Gazette notice | Companies House checks the form and publishes a notice in The Gazette. | Typically shortly after acceptance |
| 8. Objection period | Creditors and others can object. | 2 months |
| 9. Dissolution | If no one objects, a second Gazette notice confirms the company has been dissolved. | After the 2 months |
Keep the records. Business records (bank statements, invoices, receipts) should be kept for 7 years after strike-off, along with the employers' liability insurance policy if the company employed staff.
Common reasons a paper DS01 is rejected
Companies House lists these as the most frequent:
- the printed name of a signatory is missing;
- a signature date is missing;
- the form isn't signed by a majority of directors;
- no fee is included, or it's paid by the company's own cheque;
- the company name or number doesn't match the register exactly.
Filing online avoids most of these problems and is processed faster.
Changed your mind? Form DS02
You can withdraw the application online or with form DS02 while the company is still on the register. Only one director needs to sign. Withdrawal is compulsory if the company starts trading again, becomes insolvent or otherwise stops being eligible.
Extracting the money: dividend or capital?
How you take out the company's remaining cash decides how it's taxed.
Option 1: a final dividend
Taxed at the 2026/27 dividend rates after the £500 dividend allowance:
| Income Tax band | Dividend rate 2026/27 |
|---|---|
| Basic rate | 10.75% |
| Higher rate | 35.75% |
| Additional rate | 39.35% |
Option 2: a capital distribution of up to £25,000
Under CTA 2010 s1030A, a distribution made in anticipation of a strike-off is treated as capital (subject to CGT, not dividend tax) if:
- the company intends to collect its debts and pay its creditors (or has done so), and
- the total distributions do not exceed £25,000.
Treat any dividends paid in the run-up to closure with care, and take advice if the company is close to the limit.
Capital Gains Tax rates in 2026/27
| Rate from 6 April 2026 | |
|---|---|
| CGT, basic-rate band | 18% |
| CGT, higher/additional rate | 24% |
| Business Asset Disposal Relief (BADR) | 18% (14% in 2025/26; 10% before 6 April 2025) |
| Annual exempt amount | £3,000 |
Business Asset Disposal Relief (BADR) on a closure
BADR (formerly Entrepreneurs' Relief) taxes qualifying gains at 18% for disposals from 6 April 2026, up to a £1 million lifetime limit. To qualify on shares, for at least 2 years up to the disposal:
- the company must be your "personal company": you hold at least 5% of the shares and voting rights, and are entitled to at least 5% of distributable profits and assets on a winding up (or of the sale proceeds);
- you must be an employee or office holder (such as a director) of the company or a group company;
- the company must be a trading company or the holding company of a trading group.
Timing after cessation. When a company stops trading you can still qualify if the disposal (here, the capital distribution) happens within 3 years of the company ceasing to be a trading company. Don't leave a closed company sitting on cash for years: once it's only holding cash and investments, it can stop counting as trading.
"Substantial" non-trading activities. A company still counts as trading if its non-trading activities aren't "substantial". HMRC's manual (CG64090) says there is no simple formula. It looks at indicators such as income, asset values, expenses and management or staff time. Advisers commonly treat more than about 20% on these measures as a warning sign.
Is BADR still worth it? From 6 April 2026, BADR at 18% equals the basic-rate CGT rate, so it only saves tax on gains that would otherwise be taxed at 24%. That's a saving of 6p per £1 of gain for higher and additional-rate taxpayers. Compared with a dividend at 35.75% or 39.35%, though, a capital distribution taxed at 18% is still considerably cheaper.
Members' voluntary liquidation (MVL): when there's more than £25,000
If the company's net assets exceed £25,000, an MVL is usually the way to take them as capital. In an MVL:
- the directors swear a declaration of solvency, stating the company can pay its debts in full within 12 months;
- the shareholders appoint a licensed insolvency practitioner as liquidator;
- the liquidator realises the assets, pays creditors and distributes the balance to shareholders as capital, potentially with BADR.
MVL distributions have no £25,000 cap, but there is a targeted anti-avoidance rule (TAAR, ITTOIA 2005 s396B). It can tax the distribution as a dividend if all of the following apply:
- you held at least 5% of the company;
- it was a close company in the 2 years before the winding up;
- within 2 years of the distribution you carry on, or are involved in, the same or a similar trade or activity (as a sole trader, partner, through another company or through a connected person);
- one of the main purposes of the arrangements is to avoid or reduce Income Tax.
"Phoenixing" (closing a company and restarting the same business in a new one) is the main target.
DS01 or MVL?
| DS01 strike-off | Members' voluntary liquidation | |
|---|---|---|
| Cost | £13 online / £18 paper, plus accountant's fees | Insolvency practitioner fees (typically a few thousand pounds) |
| Best for | Solvent companies with ≤ £25,000 left to distribute | Solvent companies with > £25,000 of reserves |
| Tax on distributions | Capital (CGT/BADR) if total ≤ £25,000; otherwise all taxed as dividend | Capital (CGT/BADR), subject to the TAAR |
| Who runs it | The directors | A licensed insolvency practitioner |
| Formality | Simple online filing | Declaration of solvency, shareholder resolutions, Gazette notices |
| Risk of objection | Creditors or HMRC can object during the 2 months | Process controlled by the liquidator |
After dissolution: restoring a company
If assets were overlooked, or a creditor or HMRC needs the company back, it can be restored to the register, either administratively or by court order, generally within 6 years of dissolution. Restoration is slower and more expensive than getting the closure right first time.
FAQ
What is a DS01 form?
DS01 is the Companies House form used to apply to voluntarily strike off and dissolve a private limited company (LLPs use the equivalent LL DS01). It is signed by a majority of directors.
How much does DS01 cost?
£13 online, payable by debit or credit card, or £18 on paper, payable by cheque or postal order. These fees apply from 1 February 2026. The cheque mustn't be drawn on the account of the company being struck off.
Can I file DS01 online?
Yes. Companies House's "Close a company" service is the recommended route: it's cheaper, it checks the application before submission and it's processed faster than paper.
How long does a strike-off take?
The company is usually dissolved about two months after the first Gazette notice, plus Companies House processing time, so roughly three months in a straightforward case.
Do I need to tell HMRC?
Yes. HMRC must be told, and the final accounts and Company Tax Return must be filed with HMRC and all tax paid before you apply. HMRC can object to the strike-off if returns or payments are outstanding.
Do I need to file final accounts with Companies House?
No. GOV.UK says final accounts go to HMRC with the final CT600. You don't have to file them with Companies House.
What happens to money left in the company bank account?
It passes to the Crown when the company is dissolved. Distribute it and close the account before applying.
Is £25,000 the limit before or after tax?
It's the total amount distributed to shareholders in anticipation of the strike-off. If that total goes over £25,000, the whole distribution is taxed as income.
Can I still claim BADR if I strike off my company?
Yes, on a qualifying capital distribution within the £25,000 limit, if you meet the 2-year conditions and the distribution is made within 3 years of the company ceasing to trade. The rate is 18% from 6 April 2026.
Can I stop a strike-off once it has started?
Yes. File DS02 (or withdraw online) while the company is still on the register. One director's signature is enough.
Related guides
- Sole trader vs limited company: a detailed comparison
- Reducing your Capital Gains Tax bill: a comprehensive guide
- Extracting profits from your company
- Director's loan accounts: beware if overdrawn
- How to terminate a company director in the UK
- Companies House website: a guide to uncovering company details
- Understanding the UK's anti-avoidance rules (GAAR, TOAA, close companies)
- Paying HMRC: Shipley vs Cumbernauld bank details
Closing your company? Talk to us before you file. Choosing between a dividend, a s1030A capital distribution and an MVL can change the tax on your final payout by tens of percentage points.
General information only, not advice for your circumstances. Rates and fees checked 17 October 2026.
