Given the removal of ESC C16 (Extra Statutory Concession C16), if you want funds in excess of £25k from a defunct company to be taxed on shareholders via capital gains tax (CGT) rather than as dividends, you cannot strike the company off, a formal members voluntary liquidation is required. CGT normally leads to lower tax bills (NEW – PROBABLY EVEN MORE SO FROM 2016 DUE TO DIVIDEND TAX CHANGES), but not always, so check with your accountant first.
Previously, a solvent (members voluntary) liquidation typically cost £4k upwards with your local practitioner. However, if your company has 1-2 directors/shareholders, no liabilities, and the only asset is cash in the bank, MVL Online® can provide a formal MVL service direct to companies Nationwide for the low fixed fee of £995+VAT plus disbursements for advertising and bonding. See our total MVL cost page for indicators of what the whole thing will likely cost.
As the name suggests, members voluntary liquidations are where shareholders (members) choose (voluntary) to put a company into liquidation. These are only suitable for solvent companies (assets > liabilities) so MVLs are distinct from insolvent liquidations (liabilities > assets) which leave debts unpaid.
Read our Process page for further details of what’s involved. Most of your role is complete very early on, then it’s a waiting game, firstly for your bank to transfer funds to us, then for HMRC to confirm they’re happy for the case to be closed.
An MVL is a very formal process, involving lots of legal documents.
We've streamlined the process to give an affordable members voluntary liquidation with minimal effort from yourself.