The Companies Act 2006 introduced a new procedure by which a private company limited by shares can reduce its share capital by means of a solvency statement made by the directors. The procedure is set out in sections 642 to 644 of the 2006 Act.
The ICAEW has published useful short guidance on how to comply with some of these statutory requirements. That guidance appears to be no longer available for public access online, but this short note from Mayer Brown captures its main points.
The Company Law Committee of the Law Society published a memorandum in October 2008 on practical steps that directors can take before making a solvency statement, which can be read here.