Insolvency

What is Members Voluntary Liquidation?

By July 26, 2022No Comments
A Members Voluntary Liquidation is one debt solution that can help businesses

A Members Voluntary Liquidation (MVL) is for solvent companies that want to bring their business to a close. Putting a business into an MVL allows a company to extract proceeds in a tax-efficient and cost-effective way. It also allows the business to be wound down in a calm manner.

What will a Members Voluntary Liquidation do for your business?

Putting your business into a Members Voluntary Liquidation will mean that the company closes at the end of the procedure. However, it does provide you with greater tax benefits.

The MVL gives you the opportunity to extract the value of the business in the form of cash. You will also be rewarded with Capital Gains Tax instead of being charged Income Tax on the funds.  This means you will save money on taxes.

An MVL is not considered an insolvency procedure so, even though the winding-up petition is advertised in the Gazette, your business will not suffer with the same negative connotations that come with a Creditors Voluntary Liquidation (CVL).

What is the difference between an MVL and a CVL?

A Company Voluntary Liquidation comes into fruition when an insolvent company enters into a voluntary liquidation. This is the opposite of an Members Voluntary Liquidation.

The directors and/or shareholders of the company decide to close their business in both of these options, however, the proceeds of the liquidation go to creditors within a CVL. In an MVL, they go to the members.

What is the cost of a MVL?

We will be able to quote you a fixed fee to liquidate your company through an MVL method. Our assessment will be based on:

▪️ The value and complexity of held assets

▪️ How much is unpaid and how much needs to be given to creditors

▪️ How many shareholders can be paid out

Please get in touch, tell us of your situation, and we will be able to work out a fee with you.

Click on the following link for more information on Members Voluntary Liquidations.

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What is Members Voluntary Liquidation? 651d71755bd63

What is Members Voluntary Liquidation? 651d71755bd87