Members Voluntary Liquidation Assistance
A members’ voluntary (solvent) liquidation or MVL is a way of closing a company and ensuring that the final distribution of its assets (if more than £25,000) is taxed as a capital receipt and hence subject to capital gains tax. Where applicable, this will enable shareholders to be taxed at 10% on the first eligible £1m distribution under the Business Asset Disposal Relief (“BADR”) provisions.
It also gives more certainty of closure for the directors and shareholders than a dissolution or strike off , where the company could be restored for a period of up to 20 years.
Maximise tax efficiency, simplify closure, and protect your assets with trusted MVL specialists. Start your Members Voluntary Liquidation today.
Efficient Company Closure, Maximum Tax Savings
Members Voluntary Liquidation (MVL) is a safe and efficient way to close your solvent company while minimising tax liabilities for shareholders. Our expert MVL services are designed to make the process fast, efficient, and fully compliant with UK regulations.
Key Benefits of Our MVL Services:
- Tax-Efficient Distribution: distribute surplus funds to shareholders while minimising tax liabilities.
- Fast Company Closure: complete the MVL process quickly and legally.
- Protect Shareholders: safeguard directors and shareholders from future liabilities.
- Full Compliance: ensure your company closure meets all legal and HMRC requirements.
Why Chamberlain & Co is the Right Choice for Your MVL
With over 30 years of experience, we’ve helped many business owners efficiently close their companies through MVL. Here’s why clients trust us:
- Expertise You Can Trust: our insolvency practitioners have decades of experience in handling MVLs.
- Certified and Accredited: we are regulated by the Institute of Chartered Accountants in England & Wales (“ICAEW”) and fellows of the insolvency professions umbrella body: R3, ensuring the highest standards.
- Personalised Approach: we offer tailored solutions to fit your specific business needs.
- Proven Results: Our MVL process delivers tax-efficient and compliant results for hundreds of satisfied clients.
Our MVL Services: A Simple, Efficient Process
We make the Members Voluntary Liquidation process straightforward with expert guidance every step of the way. Here’s what you can expect:
- Free Initial Consultation – we start with a detailed review of your business, assets, and financial situation.
- Drafting of Liquidation Documents – we handle all the paperwork and legal requirements to initiate the MVL.
- Distribution of Surplus – our team ensures tax-efficient distribution of company assets to shareholders as quickly as possible.
- HMRC liaison – we handle all HMRC communications and make sure your MVL is fully compliant with UK law.
Final Company Closure – once all steps are complete, your company will be officially closed having cleared all liabilities.
How Our MVL Process Works in 4 Simple Steps
1. Initial Consultation
We assess your situation and discuss your options.
2. Liquidation Plan
We create a tailored liquidation strategy based on your company’s needs.
3. Distribution of Assets
W e oversee the tax-efficient distribution of remaining funds to shareholders.
4. Final Closure
We work with HMRC and other parties to ensure full compliance and the closure of your business.
Contact Us
We are happy to offer you an initial free MVL consultation that can be done remotely on a telephone or video call. Give us a call on 0113 242 0808 or e-mail advice@chamberlain-co.co.uk.
We can also discuss alternatives such as voluntary strike off / dissolution and other tax efficient compensation alternatives for you to discuss with your tax and other advisers such as pension contributions, redundancy or longer term remuneration and dividend strategies.
Common Questions About MVL
What is Members Voluntary Liquidation (MVL)?
MVL is a process used to close a solvent company and distribute its remaining assets to shareholders, often in a tax-efficient manner.
How long does the MVL process take?
The process typically takes 6-9 months, depending on factors such as HMRC communications.
What are the tax benefits of MVL?
MVL allows for the tax-efficient distribution of company assets, which can result in significant savings for shareholders, often benefiting from Capital Gains Tax rates.
How much does MVL cost?
Our fees are tailored to each company’s situation. Contact us today for a free consultation and quote.
Will HMRC need to be involved in the MVL process?
Yes, we work closely with HMRC to ensure full compliance and the secure distribution of assets.
Who is an MVL for?
Shareholders who wish to minimise their tax liabilities on funds withdrawn at the end of the company’s life.
A company which may have come to the end of its useful life, possibly a dormant/redundant company, where the shareholders have decided to cease trading but the company remains solvent and has funds to return to its shareholders.
What are the advantages of MVL?
The liquidator winds up the company minimising risk to shareholders who otherwise could be at risk of a creditor resurrecting the company for up to 20 years and making claims against them. This can occur if the company is subject to voluntary strike-off.
This process ensures that the final distribution is subject to Capital Gains Tax rather than Income Tax. Hence the top rate of Tax could be reduced from 45% to 20%, and/or even 10% if Business Asset Disposal relief is applicable.
What are the disadvantages of MVL?
The control of the company’s assets passes to an Insolvency Practitioner, although this can be mitigated by prompt dividend distributions to shareholders.
An advert for claims will be published for part of the closure process, but it will emphasise that the company is solvent.
Costs more than voluntary strike off / dissolution but provides greater peace of mind for shareholders and directors.
