Posted by amandaireland - April 14, 2025 5:15 pm Members’ Voluntary Liquidations

Are you considering retiring, or has the company reached its natural end?

If so, a Members’ Voluntary Liquidation (MVL) could be the ideal tax-efficient solution for realising the company’s capital. The MVL process is simple and streamlined for the directors/members – you only need to sign the documentation, and we handle everything else.

What makes and MVL So Tax-efficient?

Distributions made to members during an MVL are treated as capital distributions, rather than income. This means they are subject to the more favourable Capital Gains Tax (CGT) rates, rather than the higher rates for income tax, making it a more tax-efficient way to withdraw funds from the company.

While recent increases in both Capital Gains Tax (CGT) and Business Asset Disposal Relief (BADR) rates have impacted the overall tax landscape, they are still far more beneficial than dividend or PAYE tax rates. This makes an MVL particularly appealing for business owners looking to extract funds from their company.

Why else choose an MVL?

Compliance and Peace of Mind: An MVL ensures the company is properly wound up in accordance with the law, offering the directors peace of mind that they are fully compliant. This helps to minimise potential risks and liabilities, ensuring that the company is formally dissolved.

Minimal Disruption: The process is designed to be hassle-free for directors and members, ensuring minimal disruption to your life while efficiently bringing the company to a close.

Swift Process: The MVL procedure is relatively quick, with the initial payment to members often being made within just a few weeks of starting the process. Distributions can be made in the form of cash or assets in specie, depending on the Company’s situation.

 Next Steps

For more information about how an MVL can benefit you, or to discuss the specific steps involved, please don’t hesitate to get in touch with us.