Members Voluntary Liquidation (MVL)

Members Voluntary Liquidation is the legal process to wind up a limited company with the assets distributed to shareholders after the liquidator has settled any outstanding debts.

This option is only available to companies that are solvent (i.e. have enough assets to repay all of its debts in full).

There are tax advantages to this method of liquidation because any money extracted from the company is classified as a capital distribution rather than an income distribution, meaning it can be subject to a lower rate of tax.

  • MVL is normally pursued when one of the following applies:
  • The owner wishes to retire
  • The owner wishes to step down from a family business and nobody else wishes to take over
  • The owner no longer wishes to run the business
  • Shareholders wish to realise their interest in an owner managed business

Umbrella’s team of experts have a broad range of experience in commercial liquidations. For a free and strictly confidential consultation contact a member of the team. Call: 0800 611 8888 or email us.