What is a Members Voluntary Liquidation (MVL)?

Winding up the affairs of a solvent company

An MVL is a process used to wind up the affairs of a solvent company, i.e. one that can pay its debts in full.

An MVL is typically used where a company has (or multiple companies have) come to the end of its useful life. For example, the business and/or assets of a company being sold leaving only a ‘shell’; or a cumbersome corporate structure requiring simplification to reduce administrative costs; or there is a desire to move assets or value within a corporate structure.

The MVL process facilitates a controlled exit allowing the shareholders or parent to extract the cash or assets in their business in a tax-effective manner. There are often substantial tax advantages in conducting an MVL as the value that will be distributed to shareholders represents a return of capital, rather than dividend income which typically attracts a higher rate.

The process also provides greater protection for directors and shareholders than a dissolution application made without following a liquidation procedure.

Key Points about MVL

  • It can only be conducted by a Licensed Insolvency Practitioner
  • It enables an orderly wind-down of assets and affairs of a solvent company
  • It is not appropriate where the company will be unable to pay its debts in full; this would require a CVL
  • It can give rise to significant tax advantages
  • If appropriate, assets can be distributed in their existing form
  • It provides greater protection for directors and shareholders

We try to keep the process as simple as possible for you. If you are ready to close your business, complete our straightforward questionnaire. This will be sent directly to our MVL team who will contact you to discuss the next steps.

Start Questionnaire

Let’s Talk

For more information on an MVL, we offer an initial free consultation to review the situation and make recommendations on the best way forward. If we think that an MVL is the best route forward, our specialists can support you at every step of the way through the process. For a no obligation chat, complete the form opposite, include a best time for us to call you and a Partner will be in touch.

Alternatively, book a convenient time for us to contact you