Tax-Efficient Company Closure

Members' Voluntary Liquidation

Close your solvent company tax-efficiently with MVL. Reduce capital gains tax liability and distribute assets to shareholders in the most cost-effective way possible.

Tax Savings

Up to 20% CGT rate

Quick Process

3-6 months typically

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Complete Guide

What is Members' Voluntary Liquidation?

MVL is a formal process for closing a solvent company where shareholders can extract remaining assets in a tax-efficient manner, often paying capital gains tax instead of income tax.

Key Requirements for MVL

  • Company must be solvent

    Able to pay all debts within 12 months

  • Directors' declaration of solvency

    Sworn statement of company's financial position

  • Special resolution required

    75% shareholder approval needed

  • Licensed insolvency practitioner

    Must be appointed as liquidator

Tax Benefits of MVL

Capital Gains Tax Rate 10% - 20%
vs Income Tax Rate 20% - 45%

Potential savings of thousands of pounds compared to dividend extraction

MVL Process Steps

1

Initial Assessment

Review company finances and confirm solvency requirements are met

2

Declaration of Solvency

Directors sign statutory declaration confirming ability to pay debts

3

Shareholder Resolution

Pass special resolution to wind up company and appoint liquidator

4

Asset Realization

Liquidator collects assets, pays debts, and distributes surplus to shareholders

5

Company Dissolution

Final accounts filed and company removed from Companies House register

Typical Timeline

The entire MVL process typically takes 3-6 months from start to finish, depending on the complexity of the company's affairs and asset realization.

Comparison Guide

MVL vs Other Company Closure Methods

Understanding your options is crucial for making the right decision for your company closure

Method
Tax Treatment
Timeline
Best For

Members' Voluntary Liquidation

Formal liquidation process

Best Tax Rate

10-20% CGT

3-6 months

Professional process

Solvent companies with significant assets

Dividend Extraction

Extract profits as dividends

Higher Tax

20-38.1% dividend tax

Immediate

Quick extraction

Small amounts or urgent needs

Strike Off (DS01)

Voluntary dissolution

Limited Options

Assets distributed as income

2-3 months

Simple process

Dormant companies with minimal assets

Creditors' Voluntary Liquidation

Insolvent company closure

No Recovery

No shareholder returns

6-12 months

Complex process

Insolvent companies unable to pay debts

Maximum Tax Efficiency

MVL offers the lowest tax rates for extracting company assets, potentially saving thousands compared to dividend extraction or other methods.

Legal Protection

Formal process provides legal certainty and protection for directors, ensuring all obligations are properly met and documented.

Predictable Timeline

Clear, structured process with predictable timelines, allowing for proper planning and preparation of company closure.

Common Questions

MVL Frequently Asked Questions

Get answers to the most common questions about Members' Voluntary Liquidation

What are the eligibility requirements for MVL?

How much tax will I save with MVL compared to dividends?

How long does the MVL process take?

What happens if the company becomes insolvent during MVL?

Can I start a new company after MVL?

Still Have Questions About MVL?

Our experienced team is here to provide personalized advice for your specific situation

Call 01484 861406
Expert Consultation

Get Your Free MVL Consultation

Speak with our licensed insolvency practitioners to understand if MVL is right for your company and get a personalized quote

Contact Our MVL Specialists

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01484 861406

Mon-Fri 9AM-6PM

What to Expect in Your Consultation

  • Comprehensive review of your company's financial position
  • Detailed explanation of the MVL process and timeline
  • Tax implications and potential savings calculation
  • Transparent fee structure and payment options
  • Alternative options if MVL isn't suitable

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