I am the sole director of a company with debts of about £2,000, which I have loaned to the company. No one else is involved and I'd like to close my company. What is the best and cheapest option for doing this? I've looked at gov.uk, and striking off seems the best option, but the site seems to imply this is only an option when the company is solvent. I could, of course, convert my debt to shares but I'd also like to claim a loss on my self-assessment and don't think shares would be considered an allowable loss. What is my best option? 

Arthur Weller replies:  

If the company is a trading company, you should be able to claim a capital loss on a loan to a trader. See HMRC’s Capital Gains manual at CG65930 (tinyurl.com/hmrc-cg65930) for the rules and conditions. Once the loss has been claimed, the company can 'write off' the loan, and then you can strike off the company.