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Members Voluntary Liquidation (MVL)

What Is An MVL?

A Members Voluntary Liquidation (MVL) is  a fast, low cost tax efficient way of the liquidating a solvent company. A solvent company is one whose assets exceed its liabilities and one that can pay its creditors in full, within 12 months of a debt falling due. 

MVL may be appropriate for a company when:

  • The Shareholders wish to remove their investment from the company.
  • The Directors of the company wish to retire.
  • The company is no longer profitable but it is possible for the business to cease whilst still ensuring a surplus to the Shareholders.
  • There has been a breakdown in the relationship between directors or shareholders.

An MVL provides a greater degree of certainty regarding ongoing liability than striking-off. It can be a useful tool in the restructuring of companies, their businesses or property.

Depending upon how much cash there is in your company, an MVL could be the most tax-efficient way to liquidate your company and save you thousands of pounds.

By using an MVL the funds to be distributed are subject to Capital Gains Tax, rather than Income Tax.

To discuss if an MVL is the right solution for your company call us on 01656 661426 or
fill in the Contact form and we will get back to you

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