Members’ Voluntary Liquidation
How to exit and liquidate a solvent company you don’t want to run anymore.
What is a MVL?
A Member’s Voluntary Liquidation is the formal procedure to close down a solvent company.
Members’ Voluntary Liquidations from
£1,500+vat
£1,500+vat
Instead of directors running the business down, selling assets and taking dividends, the liquidator handles closure, avoiding unnecessary tax.
A Member’s Voluntary Liquidation can be completed remotely with minimal hassle, reducing costs and maximizing returns for stakeholders.
Is an MVL right for my business?
The best option for solvent companies to close down in a structured and tax-efficient way.
When a MVL is a good option
Example include (1) When retiring or stepping away from business ownership. (2) A tidy way to close a company once its project is complete. (3) Allows a company group to shut down an unneeded subsidiary.
Benefits of a MVL
(1) Returns surplus assets to shareholders tax-efficiently. (2) Cuts accounting and audit costs. (3) Saves management time on statutory returns and compliance. (4) Reduces director risk. (5) Simplifies complex structures, improving investor perception. (6) Provides quick access to shareholder funds. (7) Extracts business value as cash.
Members’ Voluntary Liquidation Criteria
Solvency – The company must be able to pay all its debts, including interest, within 12 months. Declaration of Solvency – Directors must sign a formal statement confirming the company can settle its liabilities. Shareholder Approval – At least 75% (by value) of shareholders must agree to the liquidation. Appointment of a Liquidator – A licensed Insolvency Practitioner must be appointed to oversee the process.
Taxation benefits in details
All distributions to a shareholder will be taxed as a capital gain in an MVL. However, if the company is wound up and closed by dissolution, the distributions will be taxed at the dividend rate.
Whether an MVL will be more beneficial than a dissolution will largely depend on the shareholder’s unique tax position; we will be able to advise accordingly.
Get Started Today
Simple 3 Step Business Liquidation Process
Consultation & Assessment
Book a free consultation with our experts to review your business's financial situation and determine the most appropriate liquidation method.
Liquidation Procedure
We manage the entire process, including creditor communication, asset valuation, and statutory requirements, ensuring compliance with UK regulations.
Closure & Debt Resolution
The company is dissolved and struck-off the Companies House registrar. The liquidation will come to an end and the company’s debts will cease to exist.
