A Members’ Voluntary Liquidation (or called “MVL”) is a procedure where a company with net assets over £25,000 is put into liquidation. Below that level it can be dealt with informally by concession.
A Members’ Voluntary Liquidation is a very tax efficient way of getting money out of a company and is usually done for tax purposes to take advantage of Business Asset Disposal Relief at just 10% tax.
Business Asset Disposal Relief is the new name for Entrepreneur’s Relief.
The decision to liquidate using an MVL is taken by the directors and then shareholders at a meeting. The creditors are not involved. All creditors must be paid in full within statutory interest at 8% within 12 months of the date of liquidation.
We can put a company into Liquidation within 7 days and pay out the shareholders a few days after that. It can all be done for a fixed fee.
Click on the following articles to find out more about the different members voluntary liquidation (MVL) options available to businesses.