A Members’ Voluntary Liquidation – or MVL – is a formal liquidation process designed as a way for solvent companies to wind down their operations.
An MVL can be the most tax-efficient way to extract the proceeds of a profitable company, before closing it down. All proceeds taken from a company using an MVL will be distributed as capital rather than income. This means the money will be subject to capital gains tax, rather than income tax, which can represent a considerable tax saving; Entrepreneurs’’ Relief can reduce tax liability can be reduced even further.
MVLs are typically suitable for those companies with in excess of £25,000 to distribute to shareholders, however, a licensed insolvency practitioner will be able to confirm whether an MVL is the most appropriate closure method for your solvent company.
At UK Liquidators, our service is fully partner-led and your case will always be overseen by a fully licensed insolvency practitioner.
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If you are considering liquidation for your company, taking expert advice at an early stage is crucial. At UK Liquidators, our team of licensed insolvency practitioners are committed to providing limited company directors with the help and advice they need to make an informed decision.
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