Close Your Company
A Members Voluntary Liquidation (MVL) is a voluntary closing-down process initiated by the shareholders of a solvent company looking to close the company and release cash and assets in the most efficient and orderly way.
What is Members’ Voluntary Liquidation?
Members voluntary liquidation (MVL) is a process for solvent companies to wind up and distribute assets. An increase of ‘1-person contractor’ companies has given rise to a recent proliferation of MVLs, as contractors look to release cash in the most tax efficient way possible.
If a company is not trading or will soon cease trading and has over £25,000 in assets to distribute to its shareholders, using an MVL to shut the company has tax advantages for the shareholders.
In the same way that an owner of a business selling his shares might be entitled to pay reduced dividends via ‘entrepreneurs relief’, so a shareholder using an MVL at the end of the business can do the same.
MVLs were brought into legislation in 1986 as a legal means for a company to be brought to an end and make a final distribution of assets to its shareholders.
It is a formal process that requires a licensed insolvency practitioner to act on your behalf.
Need to speak to someone?
Contact Us Today