Does the £25,000 limit for striking off a company still apply and if so, is it possible for directors to liquidate their company themselves or do they need to go through an insolvency practitioner? 

Arthur replies: 

The £25,000 rule still applies, which broadly provides that a private company may avoid the costs of putting a company into formal liquidation by distributing the assets and then having the company struck off the companies register as a defunct company. Although strictly the distribution of assets in these circumstances is an income distribution on which the shareholders would be liable for income tax, it is possible (originally by concession, but now under CTA 2010, s 1030A) to treat it as if it were a capital distribution in a formal liquidation (and, therefore, subject to capital gains tax, and possibly qualifying for business asset disposal relief) providing that at the time of the distribution the company intends to collect (or has collected) any debts and pay off its creditors and the amount of the distribution does not exceed £25,000 in total. See HMRC’s Company Taxation Manual at CTM36220.