Members Voluntary Liquidation

Saving money on Taxes

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Members Voluntary Liquidation

A tax efficient method for voluntary winding up.

You may choose a members’ voluntary liquidation (MVL) if your company is ‘solvent’ (can pay its debts) and you want to retire, step down from the family business or simply no longer want to run the business. It is also a good choice for a restructured group with surplus companies.  

With a members voluntary liquidation, the value of the business is distributed to members (shareholders) as a capital distribution, and so a lower tax rate is applied, saving money on Taxes.  MVL advice & action

6 Benefits to choosing us for your MVL

At its start..

A statutory declaration of solvency is made by a majority of company directors, instigating the members voluntary liquidation.  It declares a full inquiry has been made and that the directors believe the company can pay its full debts within 12 months of winding up.  It also states assets and liabilities.

During a members voluntary liquidation

A special resolution is later passed at a general meeting of the members and a licensed insolvency practitioner (such as ourselves) appointed as liquidator - officially starting the liquidation

At its end.

The liquidator then realises the assets and makes a distribution to creditors.  

In members voluntary liquidations, the Gazette is used to give notice of the special resolution to wind up the company voluntarily.

Once a distribution to creditors is made, the company will be dissolved (unless the court defers its dissolution).   Any surplus will be paid to members in accordance with entitlements.

A tax efficient method for voluntary winding up

MVL advice & action
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