Members Voluntary Liquidation (MVL)

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WHAT IS AN MVL?

An MVL is a solvent liquidation whereby a company has sufficient assets to settle all is debts within twelve months and the surplus is distributed to its shareholders.  The process is usually started by the company director(s).

BENEFITS OF AN MVL

The main reason an MVL is a popular method of closing a company by its directors and shareholders is that the process benefits from lower tax rates on the capital being released from the company.

The shareholder funds are distributed as capital distributions which incur a lower rate of tax than dividends.

The company’s shareholders may qualify for entrepreneurs relief (now named business asset disposal relief) on the capital being released which can reduce the tax payable to 10%.

LET'S WORK TOGETHER

If you would like to understand the MVL process in greater detail, please call our head office on 01992 392030 to speak confidentially with one of our directors or email info@rbwr.co.uk