At CG&Co, we recognise that a solvent liquidation – also known as a Members Voluntary Liquidation (MVL) – can be immensely useful when entrepreneurs want to retire or move onto other ventures.
As its name suggests, this is a liquidation procedure for solvent companies.
When handled correctly, there may be significant tax advantages for directors and shareholders in winding a company up through an MVL, but this needs to be fully assessed on an individual basis.
If a business owner liquidates a profitable business using an MVL, shareholders may be entitled to entrepreneur’s relief meaning they will pay lower rates of tax.
“MVL is often used as part of the restructuring process. It’s imperative that anyone considering this option engages the services of highly experienced and knowledgeable advisers who fully understand the intricacies of closing down a profitable business to ensure the best possible financial outcome.”
Edward Gee, Partner – CG&CO