What is an MVL?

You could say an MVL is a positive end to a company’s life. The process closes the company, leaving no outstanding matters and provides a potentially tax efficient and lucrative exit for company shareholders. An MVL is a tax efficient means of closing your solvent company and unlocking the capital.

  • Solvent liquidation of a company.
  • Positive end to a company’s life.
  • Tax efficient exit route for shareholders.

What are the benefits of an MVL?

An MVL is a POSITIVE process - if you have a cash rich company and want to keep your tax bills low, then an MVL could be the way forward.

  • Tax efficient - Shareholders pay as little as 10% capital gains tax.
  • Low costs - prices as low as £850 + VAT.
  • Turnaround & distribution of cash to shareholders from day one of appointment (Bronze) from trusted MVL experts.

Are you ready for an MVL?

If you can answer YES to the questions below, then you are ready to make the first step with us.

  • Are you (or your clients) planning to make distributions of more than £25,000 to shareholders?
  • Can the shareholders claim reliefs allowing them to pay 10% tax?
  • Is the company nearing the end of its life?

MVL Pricing

MVL Bronze

Prices start from:

£850

*Plus disbursement and VAT (Usually reclaimable)

  • Non advice service.
  • Tax friendly – entrepreneurs relief.
  • Distribution on Specie.
  • Best MVL if company has stopped trading and no assets or liabilities just a cash balance.
  • Suitable for contractors.

MVL Silver

Prices start from:

£2,000

*Plus disbursement and VAT (Usually reclaimable)

  • Advice driven service.
  • Tax friendly – entrepreneurs relief.
  • Quick access to 75% of funds day one of liquidation.
  • Best MVL if S455 interest is due.
  • Best MVL if Corporation Tax not finalised, assets on balance sheet and employees.
  • Suitable for contractors, consultant or larger companies.

MVL Gold

Prices start from:

£5,000

*Plus disbursement and VAT (Usually reclaimable)

  • Bespoke and advice driven service
  • Discussions with company's professional advisors
  • Restructuring and realisation of going from a live business to liquidation
  • Taking a commercial approach to asset realisation.
  • Dealing with creditors.
  • Contingent liabilities.

Contact an expert for professional help and advice

Our team member below will be able to help with all your questions

Kelly Walford

Kelly has an ability to manage and deliver complex MVL’s

Contact an expert
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The benefits of an MVL explained

The benefits to shareholders of winding up a company in a solvent liquidation are attractive due to the difference in rates between Capital Gains Tax and Income Tax along with Entrepreneurs Relief. Instead of the higher rate taxpayer paying 40% to 50% on a distribution of assets, with an MVL assets can be distributed and capital gains tax rates will apply at 18% or 28%, plus the costs of the liquidation. The MVL will:

  • Return surplus assets in a tax efficient manner to shareholders
  • Reduce risk to directors
  • Save accounting and audit fees
  • Save management time in preparing statutory returns and compliance information
  • Improve transparency by simplifying complex and unwieldy structures thereby enhancing investor perception

When to use an MVL

  • Are you (or your clients) planning to make distributions of more than £25,000 to shareholders
  • Can the shareholders claim reliefs allowing them to pay 10% tax
  • Is the company nearing the end of its life
  • Recent changes in tax legislation have caused you or your clients to complete a corporate structure check-up, as having many corporate vehicles is no longer tax beneficial

The process

  • The Company must be solvent (able to pay all of their debts in full) and a meeting of directors is held where they swear a statutory declaration of solvency.
  • A meeting of shareholders is held to pass resolutions to put the company into liquidation
  • The liquidator will review the company's books and records looking for any liabilities, will close any bank accounts and realise all assets
  • All creditors' claims will be agreed and paid in full (with statutory interest). Any surplus assets will be distributed to shareholders
  • Corporation tax, PAYE & NIC and VAT compliance will be concluded - with all clearances received before closure of the liquidation
  • A final meeting is held to close the liquidation and dissolution of the company is approximately three months later.

MVL – Frequently Asked Questions

What is Members Voluntary Liquidation?
Members Voluntary Liquidation is the solvent liquidation of a business. If this option is appropriate, your company must have sufficient assets to settle its debts within 12 months.

An MVL may be used for purposes of reorganisation or in the case of owner-managed businesses, to enable the shareholders to release their interest in the company.
How Long Does it Take to Initiate an MVL?
The bronze service MVL is our quick turnaround MVL. If your company accounts are finalised, all CT and VAT liabilities are paid and your accounts show a cash at bank only figure (no assets and no liabilities) then your company will fit into our Bronze Service.

We are able to quickly turnaround a Bronze MVL, sometimes from instruction to liquidation within 24 - 48 hours. But you must meet the cash at bank only criteria.

This can also give you access to your company money quickly, as you have access to your company money prior to holding the meetings to place the company into Members Voluntary Liquidation.

To begin the process, call us on 020 8915 1012 and we can start the same day (subject to qualifying criteria).

We will of course have to undertake our statutory compliance reviews but are able to react swiftly depending on your requirements to prepare the necessary meetings paperwork and the Declaration of Solvency to place your company into Members Voluntary Liquidation.
How Long Until Funds are Distributed Among Shareholders?
With our Bronze Service MVL, and with the majority of our Silver Service clients, funds can be distributed within 24-48 hours.  We distribute funds on day one of liquidation and provide you with the necessary Deed of Assignment/Distribution and the Liquidator's Distribution Statement and Receipts and Payments account. We do not ask you to transfer company money into our client account.

With more complex company structures, where your accountant recommends to use our Silver of Gold service, usually the shareholders of the company should receive about 75% of the funds extracted from the company on day one of liquidation, and within 3 months to 12 months of entering into an MVL, shareholders should receive the remaining balance of the liquidation account.  As soon as HMRC (HM Revenue & Customs) clears the case, which usually takes approximately 2 months.

There is not a specific time line which applies to all companies as there are many variables which have to be considered.  But with a Bronze Service it is day one of liquidation, a Silver Service can either be day one of liquidation for 75% of funds or up to three months to one year.
Why are Frost Group MVL'S cheaper than the MVL provider my accountant referred me to ?
It may be that your accountant has a 'special' relationship with a chosen Insolvency Practitioner and they may have worked together for many years. In our experience there are many excellent regulated Insolvency Practitioners who provide MVL's at reasonable and competitive prices, but there are also those who are charging extortionate fees for what can be a very simple process.

Can you remember many years ago when there was an outcry from Opticians when they had to give their customers a copy of their prescription for their glasses, the Opticians lost their previous loyal customers who now had the opportunity to shop around for more competitive priced glasses. If you are closing your company you are in the same situation, you do not have to use the Insolvency Practitioner recommended by your Accountant, and you can definitely shop around for the best priced MVL.

We hear daily of clients who have been quoted in excess of £3,000 for incredibly simple MVL's, it is your choice to pay such a price if you wish, but if you want to keep more of your hard earned money, please call us and discuss your requirements, time frame and expectations.
When Does a Members Voluntary Liquidation End?
The end of the procedure is marked by the Members Voluntary Liquidation final meeting held by the liquidator. The liquidator will send a notice of the final meeting to the London Gazette, and about three months later the company will be struck off the Registrar. However, the directors of the company may be able to restore the company via court order at any point within 6 years of dissolution.

Using Frost to manage your MVL

We are experts in this field with a designated department dealing solely with this type of liquidation. We provide MVL services from our offices in Bromley, London and Leicester, for businesses and contractors nationwide. We provide a fixed fee quote and a comprehensive breakdown of the disbursements, which will differ depending on your circumstances.

Our MVL product is tax efficient and competitively priced and you can be assured of expert advice based on expertise and experience. Good advice is key when managing an MVL – if the process is not handled diligently then you could face many years of tax investigations and not achieving the result that you wanted.

If you are a contractor or shareholder of a limited business you can call us on 0345 260 0101 to discuss your requirements in more detail.

Operating nationwide throughout the UK

At Frost Group, we want to make things as easy as possible for you. That is why, if you can’t come to us, we’ll come to you. We operate face to face, nationwide meetings, wherever is most convenient for you.

Contact us

Do you need our help? Get in touch with us today and find out how we can work with you.
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Croydon

Airport House
Purley Way
Croydon CR0 0XZ

bromley

Regus One, Elmfield Park
Bromley
BR1 1LU

London

86-90 Paul Street
London
EC2A 4NE

Leicestershire

Court House, Old Police Station South Street, Ashby de la Zouch
LE65 1BR

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Frost Group Limited is authorised by the Financial Conduct Authority. Authorisation number 669247.