We have a wealth of experience in MVLs:
Total number of MVLs:
1
,
2
3
7
Total cash distributed (£):
1
7
9
,
9
2
8
,
7
3
9
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Members Voluntary Liquidation (MVL) / Solvent Liquidation

Tax benefits available to you

There are different ways to close down a solvent company.

Depending upon how much cash there is in your company, using a Members’ Voluntary Liquidation (MVL) could be the most tax-efficient way and save you thousands of pounds.

By using an MVL the funds to be distributed are subject to Capital Gains Tax, rather than Income Tax.

If you qualify for Entrepreneur’s Relief (ER) you can benefit from a 10% marginal rate on distributions.

This means there can be considerable tax savings for the director(s) of the company.

We aim to distribute the assets of the company after 35 days from the date of Liquidation.

Our standard fee for an MVL is £995 +VAT, +disbs (see below for the disbursements).

 

Client Portal

We use a Client Portal which is available through our website to enable you to view, upload and store all the documentation relating to the case.

This will also issue electronic updates on the progress of the case (via email and/or text message), including when the shareholders can expect their money.

 

Contact us now for more details

Tel: 0161 907 4044 (or 0800 195 6768)
E-mail: [email protected]

The MVL Process

Members Voluntary Liquidation

Are you looking to close down a solvent company in the most tax effective way?

Does the company have total distributions of more than £25,000?

If so, new legislation (from 1 March 2012) means that the MVL is likely to be your best option…

Entrepreneurs’ Relief

In brief, Entrepreneurs’ Relief is:

  • Available to individuals disposing of shares in a trading company where they were an officer (or employee) holding at least 5% of the voting rights
  • Allows relief on lifetime gains up to £10 million
  • Effectively reduces the tax rate on any capital gain to 10%.

For more information on Entrepreneurs’ Relief speak to your Accountant (as our expertise is with the MVL process, not the tax aspects.) Or click here to see the Gov.uk information on it.

The MVL Process

A typical scenario would be where a director or contractor decides to:

  • retire; or
  • return to full-time employment

and wants to close down their company; and take their money out in the most cost-effective way.

In determining whether an MVL would be right for a particular situation, we would leave the tax calculations to the Accountant (including those relating to Entrepreneurs’ Relief).

Where it is deemed that an MVL is the best solution, an Insolvency Practitioner must be used.

Our standard fee for an MVL is £995, +VAT, +disbursements (see below). {Complex ones can cost a bit more.}

Once appointed, it is our aim to make the necessary payments to the shareholders as quickly as possible – usually after 35 days.

And, there is no need for face-to-face meetings – as the process can be done via e-mail.

The relevant disbursements

There are some legal disbursements that have to be paid in an MVL. All of these are charged at cost, and we regularly review them to ensure we are getting the best prices available.

Statutory Adverts

These are to provide any possible creditors the chance to come forward to lodge their claim.

For companies registered in England & Wales

Throughout the course of the MVL we have to take out 3 Statutory Adverts in the London Gazette.

The cost of these is (3 x £72.00 = £216 +VAT): £259.20

For companies registered in Scotland

Throughout the course of the MVL we have to take out 4 Statutory Adverts in the Edinburgh Gazette and an additional advert in the Scottish Daily Mail.

The cost of these is (4 x £72.00 = £288 +VAT and 1 x £69+VAT): £428.40

For companies registered in Northern Ireland

Throughout the course of the MVL we have to take out 4 Statutory Adverts in the Belfast Gazette.

The cost of these is (4 x £72.00 = £288 +VAT): £345.60

 

Statutory Bond

A compulsory bond needs to be taken out. This provides the directors with security whilst funds are under the control of Clarke Bell. The bond fee is dependent on the the assets of the company.

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Insolvency

Insolvency

Thanks to the help I received from Clarke Bell, I am able to pay off my debts in a reasonable and realistic manner.

Business Debt

Business Debt

Thank you for all your help with the liquidation matters. You were a joy to deal with.

MVLs

MVLs

Our MVL was handled in a timely manner and I was kept informed of progress throughout.

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