Tax benefits available to you with an MVL
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 Business Asset Disposal Relief (formerly known as Entrepreneur’s 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 £995 +VAT, +disbursements (see below for the details of the disbursements involved).