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How much does an MVL cost?

Our Members’ Voluntary Liquidations start from a low cost fee of just £995 (+VAT & +disbursements) and take just 35 days to complete.

We have a range of options for our Members’ Voluntary Liquidation service. This means that we can help you close down your solvent company with an MVL, whatever your situation is.

We have a wealth of experience in MVLs:

Total number of MVLs:
4
,
0
4
7
Total cash distributed (£):
5
5
9
,
6
4
1
,
7
2
9

Tax benefits available to you with an MVL

If your company has assets, a Members Voluntary Liquidation (MVL) could be the most tax-efficient way to distribute those assets to its shareholders. By using a MVL, distributed funds are subject to Capital Gains Tax, rather than higher Income Tax, making it a tax efficient process.

If you qualify for Business Asset Disposal Relief (formerly known as Entrepreneurs’ Relief) you can even benefit from a lower 10% marginal rate on distributions.

Our range of Members’ Voluntary Liquidation options

Option 1Option 2Option 3
You always remain in control of your moneyYou receive your funds (in full) within 35 days from the date of liquidationYou receive your funds (in full) after 35 days from the date of liquidation
Directors withdraw all the cash from their company bank account shortly before we are appointedAssets include CashAssets include Cash
The Statutory Adverts then run for 21 daysDirectors transfer the company’s bank balance to a named client account under our control shortly before our appointmentUpon our appointment, we contact the company’s bank to request the closure of the account and the transfer of the money to a designated, named client account
Assuming no creditors lodge a claim, the ODLA is distributed (in specie) between day 22 and day 35 from the date of liquidation. (This is, essentially, a ‘paper exercise’, as the funds always remain in your control.)There is no delay caused by waiting for the company’s bank to send us the moneyThe length of time this takes depends on your bank. Some banks are quick, and some are slow
Upon our appointment, we transfer these funds to a designated, named client accountAs a result, we cannot control the speed at which your company’s assets are distributed to the shareholders. However, it will typically be 35 days or more after the date of the liquidation
From £995
(+VAT +disbursements).
From £1,245
(+VAT +disbursements).
From £1,495
(+VAT +disbursements).

If you are unsure as to which option is the right one for you, just contact us (and / or your accountant) to discuss it.

The Relevant Disbursements

There are some disbursements that have to be paid in a Members’ Voluntary Liquidation.

Clarke Bell charge all of these 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.

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 £92.00 = £276 +VAT (£331.20)

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 assets of the company. (The typical bond fee is between £80 – £240.)

Important information...

The distribution to shareholders

We distribute 100% of the funds after 35 days from the date of liquidation.

In cases where a client has withdrawn the funds prior to our appointment – thus creating an Overdrawn Director’s Loan Account (ODLA) – this would be distributed ‘in specie’ after 35 days.

This has the advantage of the funds being kept in the control of the clients, which is a preferable option for some of our clients.

Additional fees will be charged if the company’s assets include:

  • a property which needs to be distributed in specie. Solicitors will need to be appointed.
  • a Deed of Assignment (e.g. for Premium Bonds or Fixed-Term Savings Accounts). Solicitors will need to be appointed.
  • a pension. Trustees will need to be appointed. The cost of this will depend on the number of members in the pension scheme.

If your company has any of these assets or any not listed above, just contact us and we will let you know the additional costs.

Section 110 demerger

For clients who are looking to demerge a business using Section 110 of the Insolvency Act 1986, our fee is £2,995 +VAT +disbursements

For more information about a s110 demerger, click here.

FAQs

 

 

What are the disbursements in an MVL?

Some legal disbursements have to be paid as part of the MVL process, and we regularly review them to ensure the best prices. They include; statutory adverts to give creditors a chance to come forward and lodge claims and a compulsory bond that provides directors with security.

Click here for more information.

Do I qualify for Business Asset Disposal Relief / Entrepreneurs’ Relief ?

Business Asset Disposal Relief / Entrepreneurs’ Relief offers a reduced tax rate of 10% rather than the 18% (for basic rate income tax payers) or 28% (for higher rate payers). To qualify for this you must be an individual not a company, work as an officer or employee of that company, own at least 5% of the company and have at least 5% of the voting rights.

Click here for more information.

When is the best time to do an MVL?

You may decide to close down your solvent company for a variety of reasons. The main ones are usually due to retirement, moving into full-time employment, or because you’re re-organising a group of companies. We can work with you to determine if an MVL is the best option, and discuss the precise timing to start the process.

Click here for more information.

What are the tax benefits of an MVL?

Using an MVL will mean that any funds can be distributed as capital, thereby reducing the tax burden. This can result in considerable tax advantages for you as the director of your company. If applicable, it allows you to close down your solvent company and take out your money in the most efficient and cost-effective way. An MVL is an HMRC-approved process.

Click here for more information.

Why might contractors consider an MVL?

As a contractor, there will be many reasons why you might decide to close down your company using an MVL process. You may be preparing for retirement, taking on an employee-role or emigrating. Regardless, the crux is that you no longer need your (solvent) company, and therefore want the most tax-effective and HMRC-approved way to extract the assets.

Click here for more information.

What happens during a Members’ Voluntary Liquidation?

The MVL process is quite straightforward and involves your accountant making the relevant tax calculations to see whether an MVL is the best option for you. If it is, we will aim to distribute company assets after 35 days from the date of liquidation. Also, there is no need for a face-to-face meeting.

Click here for more information.

What is the difference between an MVL and a CVL?
  • A Members’ Voluntary Liquidation (MVL) is a tax-efficient way for you to close down your solvent company. With Clarke Bell MVLs cost from just £995 +VAT + disbursements. (Very complicated ones cost a bit more).
  • A Creditors’ Voluntary Liquidation (CVL) is used when your insolvent company needs to be liquidated, and you care about your future business reputation. The cost of a CVL is from just £2,995 (+VAT + disbs).

Click here for more information.

How much does a Members’ Voluntary Liquidation cost?

Our standard cost for a Members’ Voluntary Liquidation is from £995 + VAT + disbursements; and we aim to distribute your company’s assets after 35 days from the date of Liquidation. Getting a quote with us is easy, just contact our team on 0161 956 8387 or [email protected].

Click here for more information, and find our how our MVL service compares to other UK providers.

Can I reclaim the VAT in an MVL?

Our low cost MVL service comes at a very affordable fee – from just £995 (+VAT + disbursements), and if your company pays our fee and is VAT-registered, it can claim back the VAT.

Click here for more information.

Will my money be safe during the MVL process?

The company bank account will be closed and funds forwarded to us for the Liquidation’s estate. Funds are held in a client-specific, interest-bearing account with Barclays and distributions to shareholders are transferred to the shareholders’ bank accounts. A compulsory bond also needs to be taken out, which provides directors/shareholders with security while the funds are under the control of Clarke Bell.

Click here for more information.

When will shareholders get the money?

Clarke Bell always aims to distribute the assets of the company after 35 days from the date of Liquidation. Getting a quote with us is easy, just contact our team on 0161 956 8387 or [email protected].

Why Choose Us

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Low cost

From £995 +VAT +disbs (at cost)
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Tax advantages

For company shareholders
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Quick payment

Usually received after 35 days
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Credit ratings

Not affected
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Insolvency Practitioner

Must be used (even though your company is solvent)
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HMRC-approved

Is a legitimate and tax-effective way to wind up a solvent company
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Nationwide

No need for face to face meetings
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Friendly

Professional Services

I am very impressed with the professional and efficient approach adopted by Clarke Bell.

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

This is an excellent service which is also very good value for money – I am pleased to recommend Clarke Bell without reservation.

Clarke Bell provided a fast, friendly, professional, efficient and low cost service when we decided it was time to end the life of our company via the MVL route.

The documentation supplied was clear, any questions were answered immediately and there were no hidden costs.

I have absolutely no hesitation in recommending Clarke Bell to any other company director wishing to end the life of their company via the MVL route.

I just wanted to say how impressed I have been with every aspect of the MVL process.

It has been an absolute pleasure to work with your very professional company.

I will have no hesitation in recommending Clarke Bell Limited to any other potential clients.

Wishing you every success for the future.

Dear Mr. Bell, your firm has just completed the liquidation of the above company.

I would like to record the excellent service given by your staff, and the professional and timely manner in which they conducted the liquidation.

I will certainly use the services of your firm for any future liquidations of my clients and would recommend your firm to others needing such services.

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

For your free expert advice 0161 907 4044

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