What is a Members Voluntary Liquidation or MVL?

What is a Members Voluntary Liquidation or MVL? 1

A Members Voluntary Liquidation, or MVL, is often called a “solvent liquidation” because it is used to liquidate companies which are solvent and have a surplus of assets which needs to be returned to the shareholders.

A Members Voluntary Liquidation is often the preferred option when the directors and shareholders wish to bring the life of the Company to an end and extract the remaining assets in a tax efficient way. If Entrepreneurs Relief, which is now called Business Asset Disposal Relief, is available, the tax rate payable on the assets extracted will be only 10%, which is far less than if the funds were extracted by way of dividends.

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More information can be found on our Members Voluntary Liquidation home page.

Alternatively, if you would like a free, no obligation face to face, Zoom or telephone meeting, with a Licensed Insolvency Practitioner, please ring 01326 340 579 or 01305 458 383, to arrange a mutually convenient time and date to discuss the options open to you and your Company.

 

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