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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 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 cost for a Members’ Voluntary Liquidation is £995 +VAT, +disbursements (see below for the details of the disbursements involved).

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We have a wealth of experience in MVLs:

Total number of MVLs:
2
,
3
2
1
Total cash distributed (£):
3
6
8
,
4
8
4
,
9
6
3

What types of MVL do we handle?

We have a range of categories 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.

Our prices are affordable, and we make the distributions to shareholders quickly.

To make things as clear as possible for you, we have categorised our MVL service options.

Each category assumes that the company has 1 or 2 shareholders.

If your company does have more than 2 shareholders, we can still help you – for £50 +VAT per additional shareholder.

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Our MVL options...

Basic MVL

Company’s assets are:

  • • Cash at Bank only.

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Standard MVL

Company’s assets are:

  • • Overdrawn Director's Loan Account (ODLA) only, or
  • • Cash at Bank and an ODLA

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Complex MVL

Company’s assets are:

  • • Overdrawn Director's Loan Account (ODLA) and Cash at bank and
  • • Crown refunds to be recovered (e.g. Corporation Tax, s455)

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Bespoke MVL

Company’s assets are:

  • • Complex assets
  • • Multiple creditors
  • • Numerous shareholders
  • • Pension scheme

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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)

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 £78.00 = £234.00 +VAT): £280.80

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.)

Our MVL Process

  • Advertise in the gazette

  • Sign the declaration of solvency

  • Begin the liquidation process

  • Distribute capital

  • Dissolution of company

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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.

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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.