Yes, you can use the Members’ Voluntary Liquidation (MVL) process if your solvent company has more than two shareholders.
And with Clarke Bell, you will still be eligible for our ‘£995 MVL service’ (unless there is a very large number of shareholders in your company).
Each year about 10,000 companies go through the MVL process due to its tax-effectiveness. And it is fully approved by HMRC.
In the majority of cases, a company going into an MVL will have one or two shareholders (often a husband and wife). However, there are many times when a company has more than two. In such cases, some Insolvency Practitioners charge a higher fee for their MVL service.
At Clarke Bell, thanks to our efficient systems and processes, we can still provide our ‘£995 MVL service’ (unless there is a very large number of shareholders in your company).
What is an MVL?
An MVL is a very tax-efficient, HMRC-approved, formal process for closing down a solvent company. Company directors usually make use of the MVL option when they:
- are taking up an employee role (perhaps because of the new IR35 rules)
- no longer need the company for the reason it was originally set up
- are retiring.
Whatever your reason for closing down your solvent company, you’ll want to make sure you get the money out of your company in the most tax-efficient, legal and cost-effective way.
An MVL could end up saving you thousands of pounds, as funds that are distributed will be subject to Capital Gains Tax, as opposed to Income Tax.
You may qualify for Entrepreneur’s Relief
When closing down your solvent company, you may also be entitled to take advantage of Entrepreneurs’ Relief (ER). This is an HMRC-approved tax relief scheme, specifically designed to reduce the rate of tax you’re liable for.
If you qualify for ER, you can benefit from a 10% marginal rate on distributions, which can equate to considerable tax savings.
Click here to see if you are eligible for Entrepreneurs’ Relief.
How Clarke Bell can help you
You will need to appoint a Licenced Insolvency Practitioner to put your company through the MVL process.
By appointing Clarke Bell, you can feel assured that your MVL will be dealt with in a legally compliant, friendly and professional way. We:
- have securely distributed over £260 million cash, in more than 1,850 MVLs
- are one of the leading MVL providers in the country
- are regulated by the ICAEW
- have been trading for over 28 years.
For more information about putting your company into a Members’ Voluntary Liquidation – however many shareholders you have – just contact us on 0161 907 4044 or [email protected]
