Tax benefits available to you with an MVL
If you’re going to be affected by the IR35 tax reforms coming into affect in April 2020, you may be wondering about the best way to close down your limited 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 Business Asset Disposal Relief / Entrepreneurs’ Relief 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 cost for a Members’ Voluntary Liquidation is from £995 +VAT, +disbs (see below for the disbursements).