Members Voluntary Liquidation (MVL)

A Members’ Voluntary Liquidation (MVL) is a formal process for closing down a solvent company in a cost effective way.

If you planning to close down your solvent limited company or are a contractor caught inside IR35, then we can help.

Our licensed insolvency practitioners can offer professional advice to contractors caught by IR35 today. Depending upon how much cash there is left, using a Members’ Voluntary Liquidation (MVL) could be the most tax-efficient way and save you thousands of pounds

What is an MVL

A Members’ Voluntary Liquidation (MVL) is a structured procedure designed to wind up a solvent company in a cost-effective manner. MVLs are commonly used as a tax-efficient strategy for exit planning when a profitable company has fulfilled its purpose.

Shareholders may choose this route to extract their investment profits, or if the company’s directors are approaching retirement or seeking to exit the business for other reasons. The MVL process ensures a smooth closure for solvent companies.

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By using an MVL, then subject to your future plans, the funds to be distributed are subject to lower rates of taxation (Capital Gains Tax, rather than Income Tax).

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If you qualify for Entrepreneur’s Relief (ER), you can benefit from a 10% marginal rate on distributions. This means there can be considerable tax savings for you personally

Umbrella.UK Insolvency Business Closure Business Rescue

FREE no obligation consultation within 24 hours*

We will offer dependable and expert help to close your company quickly and in the most tax efficient way.
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We offer a nationwide, remote service

Our friendly team offers nationwide accessible advice and support by phone, email, in-person or online.
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Director led involvement so you will benefit from a high level of expertise every step of the way

Overseeing Umbrella Insolvency, Thomas Fox has more than 14 years of experience in personal and corporate insolvency practice. He is a member of the Insolvency Practitioners Association (IPA) and Association of Business Recovery Professionals (R3).

When is an MVL appropriate?

  • Due to IR35 legislation the owner is no longer able to contract and operate a limited company (PSC).
  • The company has sufficient assets to repay all of its creditors, if any.
  • 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.
A creditor’s guide to MVL Umbrella.UK Insolvency

If you are unsure what situation your business is in, don’t worry! Call our confidential expert advisers on
0800 611 8888

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    Process for Members’ Voluntary Liquidation

    Members Voluntary Liquidations follow a specific process.

    1. Tax Advice – Director/Shareholder of the company to take appropriate tax advice from their tax adviser to see if an MVL is suitable. If the company is a Personal Service Company (PSC) then the contractor will ordinarily be both the director and shareholder.
    2. Formal Instruction – Umbrella are instructed by the company/PSC to assist in arranging the meetings to place the company/PSC into MVL and for Umbrella’s Insolvency Practitioner to be appointed as liquidator.
    3. Approval – MVL is approved. Umbrella Insolvency proceed to:
      1. Collect the cash from the company/PSC business bank account.
      2. Pay off the creditors including HMRC.
      3. Pay the surplus funds, after costs, to the shareholder/contractor.

    Acting as your liquidator, Umbrella will make the Members Voluntary Liquidation (MVL) process as straightforward as possible.

    To find out how a Members Voluntary Liquidation could benefit you, speak confidentially to a member of our professional team today. Call: 0800 611 8888.

    *We don’t charge for an initial consultation, but it may lead to an insolvency solution where our pre-appointment costs are reimbursed as part of the fee structure that creditors approve.