Members’ Voluntary Liquidation

MEMBERS' VOLUNTARY LIQUIDATION (MVL)

Kirks Insolvency offers MVL services to businesses across the UK from our various office locations.

We want to charge you as little as possible for this service. To help us achieve that the more you can do before you appoint us the better. If you are able to;

pay off all of your suppliers so nothing is owed to them,
collect in all of the book debts,
sell any fixed assets (at market value),
just leave a bank account balance.

It also helps if all of your VAT and PAYE returns are up to date.

Your accountant will also need to have prepared annual accounts to the end date of trading and have worked out the Corporation Tax due. This may have to be paid after the date of liquidation.

If you are expecting to pay just 10% tax then you need to check that you qualify for Business Asset Disposal Relief. You would normally ask your accountant to check this for you or you can visit www.gov.uk/business-asset-disposal-relief.

The above costs are plus VAT which can usually be reclaimed. If you have more than five shareholders or creditors we may need to quote a revised fixed fee. Find out more about the process, what we need and the costs of a members voluntary liquidation.

WHAT WE DO - THE MVL PROCESS

We prepare all of the necessary MVL paperwork including an indemnity that we ask you to sign. We then aim to distribute the funds to you within the first week of liquidation, only holding back funds to cover:-

Our agreed fee with you.
The bond cost we have to pay on each and every case (e.g. a case with £400,000 of assets the bond cost would be £205).
The costs of the statutory advert in the London Gazette (typically £356.94 plus vat).
Any other expected creditors that have not been paid (for example the final Corporation Tax bill).
We can transfer assets such as freehold property (called a ‘distribution in specie’) or rights to other assets if you cannot sell them (for example; if you have sold the business and are receiving payment by instalments we can transfer them to you).

Members’ Voluntary Liquidations are used as a method of extracting company’s funds and for shareholders to claim Business Asset Disposal Relief formerly Entrepreneurs Relief (meaning the shareholders only usually pay Capital Gains Tax of 10% on the first £1 million).

Prior to instructing us you will need to take tax advice from your accountant to make sure you will qualify for the 10% tax rate on capital gains. They are welcome to ask us any questions and we can make suggestions on the timing of events.

QUICK GUIDE TO MEMBERS VOLUNTARY LIQUIDATION

If you would like to know more please download our printable Quick Guide to Members Voluntary Liquidation.

How safe is our money with you?

It is very safe – read our Frequently Asked Questions to find out more about this.

Members Voluntary Liquidations in 2023 and the first half of 2024

Value of the assets we have paid out

£ 0 m

We offer quick liquidation for your business. Contact us directly to find out more.

Across the South West, London & Wales

Entrepreneurs Relief

Entrepreneurs Relief is a capital gains tax relief that means you only pay 10% capital gains tax on the sale of qualifying assets.

SECTION 110 SCHEME OF ARRANGEMENT

A Section 110 Scheme of Arrangement is a very useful way of reorganising a company between types of trade or classes of shareholders.

QUICK GUIDE TO MEMBERS VOLUNTARY LIQUIDATION

Download the Guide

Just a quick email to say a heartfelt thank you for your very calm, considered, expert advice regarding my circumstances on Tuesday. Things looked bleak before you explained my options much more clearly, in simple layman’s terms.

Rob Elliott

Members’ Voluntary Liquidation