Closing down & dormancy
An SH20 is the directors' solvency statement filed with a private company capital reduction. When it is used and what goes with it.
Written and reviewed by Waqas Sagar Member of ICAEW, Fellow of ACCA, Fellow of AAT, a double graduate and entrepreneur at heart, helping startups grow and serving thousands of businesses nationwide with an excellent team. Published by LimitedCompany.Accountants, 12 London Road, Morden, London SM4 5BQ. Reviewed 21 October 2026 against 2026/27 UK rates and current Companies House and HMRC guidance.
Form SH20 is the directors' statement of solvency a private company files at Companies House when it reduces share capital using the solvency statement route. Every director confirms the company can pay its debts for the next 12 months. It is filed with SH19 and the special resolution within 15 days.
When it is used
Risks
Form SH20 is the directors' statement of solvency a private company files at Companies House when it reduces share capital using the solvency statement route. Every director confirms the company can pay its debts for the next 12 months. It is filed with SH19 and the special resolution within 15 days.
Capital reductions are used to return capital to shareholders, create distributable reserves to pay dividends or tidy up before a sale or members' voluntary liquidation.
Making a solvency statement without reasonable grounds is a criminal offence. The statement must be made no more than 15 days before the resolution. Take advice before relying on it.
Rates, thresholds and deadlines quoted here reflect the 2026/27 UK position and current Companies House and HMRC guidance. Check GOV.UK, or ask us, before relying on them for your own company.
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We work with company directors across London and Surrey from our office at 12 London Road, Morden, London SM4 5BQ. Pick your area, or send the form below and we will call you back.
Frequently asked
Yes, a statutory fee is payable with the SH19.
Yes, every director must make the statement.
Yes, we prepare the resolution, SH19, SH20 and accounts adjustments.
Keep bank statements, sales and platform reports, purchase invoices, payroll records, VAT workings, finance agreements and Companies House correspondence. We confirm the exact list at onboarding and identify gaps before a filing deadline becomes urgent.
The fee depends on transaction volume, record quality, VAT and payroll requirements, historic catch-up and the level of reporting needed. We agree a fixed scope and price before technical work starts, with published packages available on our fees page.
Yes. We request professional clearance, collect the prior records and authorities, check the next Companies House and HMRC deadlines, and give you one clear handover list. The process is normally completed remotely.
Yes. We work through secure cloud records, scheduled reviews and digital approvals, while keeping a named team available by phone, video call and email. Clients can also visit our Morden office by appointment.
We regularly work with Xero, QuickBooks, FreeAgent, Sage and connected sales or expense apps. The right setup depends on transaction volume, integrations and the reports you need, not simply the software brand.
The relevant calendar may include annual accounts, Corporation Tax payment and return dates, confirmation statements, VAT returns, payroll submissions and Self Assessment. We map the dates from your company year end and registrations.
No. This page explains general UK rules and common accounting treatment. Your facts, contracts and wider tax position must be reviewed before you rely on a conclusion.
Included approach
Check the current rules
Deadlines, thresholds and filing rules change. GOV.UK and Companies House publish the current statutory position; advice should then be applied to your company’s circumstances.
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Everything is fixed price and agreed before we start. Prices are the same whether you are in London, Morden, Croydon or anywhere else in the UK.
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