There are different ways to close down a solvent company.
Depending upon the total value of the assets in your company, using a Members’ Voluntary Liquidation (aka a solvent liquidation) 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 Entrepreneurs’ Relief (ER) you can benefit from a 10% marginal rate on distributions. This means there can be considerable tax savings for the shareholders of the company.
We aim to distribute the assets of the company after 35 days from the date of Liquidation.
Our standard fee for an MVL is £995 +VAT, +disbs (see below for the disbursements).
Low cost£995 +vat +disbursements (at cost)
Tax advantagesFor company directors
Quick paymentUsually received after 35 days
Credit ratingNot affected
InsolvencyPractitioner must be used
Not tax avoidanceIs a legitimate and tax-effective way to wind up a solvent company
NationwideNo need for face to face meetings
There are some legal 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.
These are to provide any possible creditors the chance to come forward to lodge their claim.
For companies registered in England & Wales
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 £72.00 = £216 +VAT): £259.20
For companies registered in Scotland
Throughout the course of the MVL we have to take out 4 Statutory Adverts in the Edinburgh Gazette and an additional advert in the Scottish Daily Mail.
The cost of these is (4 x £72.00 = £288 +VAT and 1 x £69+VAT): £428.40
For companies registered in Northern Ireland
Throughout the course of the MVL we have to take out 4 Statutory Adverts in the Belfast Gazette.
The cost of these is (4 x £72.00 = £288 +VAT): £345.60
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.