Members’ Voluntary Liquidation (MVL) Process Advice
A members voluntary liquidation or MVL could apply to your company or limited liability partnership if it is solvent, you are looking to close the business down, and the company has sufficient funds to pay all creditors in full. The process of a members voluntary liquidation is often referred to as a solvent liquidation.
This type of voluntary liquidation involves closing a solvent company down with the intention of extracting the cash or assets in a tax efficient manner and dividing them out between the shareholders and directors. A members’ voluntary liquidation could potentially be the ideal solution for your company if it has realisable assets such as property, vehicles or stock that could be liquidated into cash, or it has cash in the bank already that you would like to extract.
For shareholders, a members voluntary liquidation provides an excellent tool for taking cash from your company at a much lower rate of tax than would be possible if dividends were taken for example.
Typical Scenarios Where a Members’ Voluntary Liquidation Could Be Used:
- Your company has plenty of assets, such as property, vehicles, stock and cash in the bank, yet the company has no future use or purpose.
- The company’s shareholders and directors would like to retire and transfer the firm’s assets and cash over to their personal side and close the company down.
- You may not wish to have anything to do with the company going forward and may want to realise any assets and cash that are within the company.
- You may wish to start a new venture with a new company and would like to get what you can out of your existing company, beforehand.
To find out more about how the member’s voluntary liquidation process (MVL) can enable you to extract company cash or assets at a much lower rate of tax, you can call us on 08000 746 757 or use our live support feature at the top of the page to get answers fast.