Harnett Accontants

Harnett & Co | Chartered Accountants, Kingston upon Thames
Global House Business Centre 1 Ashley Avenue Epsom Surrey KT18 5AD
ICAEW Authorised Practice
01372253100
Accountancy

Drawing Capital Out Of Your Company Upon Cessation? Harnett Accountants Are Here To Help

It used to be the case that drawing money out of an private limited company upon cessation was a private matter. You would be charged a tax rate of 10% on the money that you drew out of the company, and that would be that. However, the rules have now changed somewhat. You can draw out up to £25,000 at the tax rate of 10% with an informal liquidation, but anything above that is considered to be personal income and will be taxed accordingly.

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Reviewed for 2026/27: All tax figures and HMRC rules in this article reflect current guidance for the 2026/27 tax year.

Key Considerations

This is not good news for business owners who want to draw their hard earned cash out of their company upon cessation. However, there is a solution, and Harnett accountants can advise you how to achieve a much lower tax rate when withdrawing capital from your business upon cessation. Please contact us to arrange a free one hour no obligation consultation, and we will discuss all of your accounting and financial planning needs.

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📌 Important: Tax rules change regularly. Always verify current figures at gov.uk/hmrc or speak to a qualified accountant.
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Harnett and Co are ICAEW chartered accountants in Kingston upon Thames, Surrey. We give clear, practical advice to businesses and individuals across West London and Surrey. Book a free consultation today.