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Posted Wed, 06 Mar 2024 17:50:26 GMT by dobrui
Hello, I'm seeking clarification on whether I can designate my company as dormant for both HMRC and Companies House, given that it holds investments through an investment broker. These investments are in an accumulating index fund, meaning no dividends will be distributed, and I don't plan to liquidate any shares in the fund in the foreseeable future. As I understand it, these investments should be considered assets, allowing me to still classify the company as dormant if I don't trade them in any way. I need the dormant status because I haven't had any work/income in the past year, and it appears unlikely that this situation will change in the upcoming tax year. However, I am committed to preserving what I have accomplished thus far and remain open to seeking new clients and income streams if the economic situation improves. For context, I am a freelancer working through my the ltd. To summarise, can my company be designated as dormant while holding assets in the form of index funds (ETFs) that do not pay dividends and are not intended to be sold during the dormant period? Thank you.
Posted Mon, 11 Mar 2024 16:18:42 GMT by HMRC Admin 19 Response
Hi,

As the company holds assets capable of realising income, and, or gains, it cannot be considered dormant.

Thank you.

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