As the name suggests, members voluntary liquidations are where shareholders (members) choose voluntarily to put a company into liquidation. These are only suitable for solvent companies (assets > liabilities). MVLs are distinct from insolvent liquidations (liabilities > assets), which leave debts unpaid.
If your company has a final net asset position above £25k, an MVL will be required to qualify for capital gains tax (CGT) treatment. CGT normally leads to lower tax bills than dividends (even more so since April 2016 due to dividend tax changes), but not always, so check with your accountant first.
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 process is likely to cost. Perfect for ex contractors/freelancers.
An MVL is a formal process, involving lots of legal documents.
We’ve streamlined the process to give an affordable members voluntary liquidation with minimal effort from yourself.
Read our process page for further details of what’s required. Most of your role is complete early on, once you’ve provided us with some basic information. We then handle all the stages of the process to ensure you receive a prompt distribution of cash and HMRC is happy for the case to be closed.