Case Study: Tech Consultancy MVL – Director Retirement and Tax Efficiency

• “Can I access the company’s cash in a tax-efficient way?”

• “What’s the difference between an MVL and striking off?”

• “How long will the process take?”

We explained the differences between informal strike off and MVL, particularly around tax treatment and liabilities.

With over £25,000 in retained profit, MVL was the clear choice as it allowed Mark to benefit from Business Asset Disposal Relief (formerly Entrepreneurs’ Relief). 

We introduced him to a licensed insolvency practitioner who: 

• Prepared a Declaration of Solvency 
• Managed creditor notifications (none were outstanding) 
• Distributed funds as capital (10% tax rate with BADR applied) 

• The company was closed via MVL within six weeks 
• Mark received over £160,000 after tax 
• No legal or tax complications occurred 
• He exited his business cleanly and professionally 

• MVL is ideal for solvent businesses with retained profit over £25k 
• Entrepreneurs’ Relief reduces tax to 10% on qualifying distributions 
• Directors can plan their exit with clarity and peace of mind