North Yorkshire Council

 

Executive

 

6 January 2026

 

Closure of The Mercury Housing Co Ltd

 

Report of the Assistant Director for Legal Operations

 

1.0

PURPOSE OF REPORT

 

1.1

 

 

1.2

To provide the Executive with an update on the current status of

The Mercury Housing Co Ltd.

 

To seek Executive approval to take steps to apply for it to be dissolved.

 

 

 

2.0             BACKGROUND

 

2.1             The Mercury Housing Co Ltd (the “Company”) was incorporated on 9 January 2015.

 

2.2             The Company is a private limited company with share capital wholly owned by The North Yorkshire Council (the “Council”). The share capital amounts to 1 share of £1.  Prior to local government reorganisation on 1 April 2023, the Company was wholly owned by Richmondshire District Council.

 

2.3             The Company was set up for the following purposes:

 

Ø  Construction of domestic buildings.

Ø  Buying and selling of own real estate.

Ø  Other letting and operating of own or leased real estate.

 

However, the Company has never been active.

 

3.0             PRESENT POSITION

 

3.1             The Company has been dormant since it was incorporated and as such, it does not pay any corporation tax, it does not have a bank account, it does not have any employees, it does not have any agreements with creditors, and it does not own any assets, nor have any outstanding debts or charges.

 

3.2             The Company has two directors, Callum McKeon (Assistant Director of Regulatory & Harbour Services, Registration, Bereavement, Coroners Service) and Barry Khan (Assistant Chief Executive (Legal and Democratic Services)).

 

4.0          FUTURE OF THE COMPANY

 

4.1             The Company has not actively traded since it was incorporated. However, there are on-going costs for the Company to file dormant accounts and confirmation statements each year to HMRC and Companies House. It is therefore proposed that the Company apply to be struck off the Companies Register, resulting in its dissolution. This process is known as voluntary strike off.

 

5.0          FINANCIAL IMPLICATIONS

 

5.1          Before applying to Companies House to begin the process of dissolution, the Company is required to inform HMRC of its plans. Additionally, the Company must send final statutory accounts and a company tax return to HMRC, expressing that they are the final trading accounts and that the Company will soon be dissolved. The Company must also pay all corporation tax and any other remaining tax liabilities. As the Company is dormant and has never actively traded, it is envisaged that there will be no corporation tax to pay.

 

5.2          Any business assets of the Company must be dealt with before applying to be struck off the Companies Register. As far as we are aware there are no assets of the business.

 

5.3          There will be a cost of £33.00, payable to Companies House, as part of the online application process. This will be paid by the Council.

 

6.0          LEGAL IMPLICATIONS

 

6.1          Once an application for striking off has been received by Companies House, a formal notice will be published in the London Gazette. If there are no objections, the Company will be struck off the Companies Register after a period of 2 months has passed as stated in the notice. A second notice will then be published in the London Gazette, meaning the Company will no longer exist.

 

7.0          HUMAN RESOURCES IMPLICATIONS

 

7.1          As the Company does not have any employees, there will be no implications in respect of redundancies or payment of final wages, PAYE and national insurance contributions. As part of the requirement to inform HMRC of its plans, the Company will confirm its employment status.

 

8.0          EQUALITIES IMPLICATIONS

 

8.1          Officers have completed an initial equality impact assessment screening form (Appendix 1) and do not believe that the proposal has an adverse impact of any of the protected characteristics identified in the Equalities Act 2010.

 

9.0          RISK MANAGEMENT IMPLICATIONS

 

9.1          Although the Company is dormant and is not actively trading, it is still required to file annual accounts and confirmation statements to HMRC and Companies House at a cost to the Council.

 

10.0

RECOMMENDATION

 

10.1

Members are requested to:

 

i.              approve the application to strike off and dissolve the Company;

 

ii.             authorise the Company’s directors to apply to Companies House for

the voluntary strike off of the Company; and

 

iii.            authorise the Assistant Director for Legal Operations to take all

necessary steps to facilitate the strike off of the Company.

 

 

 

APPENDICES:

 

Appendix 1 – Initial equality impact assessment screening form

 

 

JENNIFER NORTON

Assistant Director for Legal Operations

 

2 December 2025

 

Author of Report: Jennifer Norton

 

Background Documents: None