Is now a good time to do an MVL?
Published: 01/02/2021 By Jane PriceThe Chancellor is due to deliver his budget on the 3rd March 2021 so if you are a director thinking about closing a company - now maybe a good time.
A Members Voluntary Liquidation or an MVL is a voluntary procedure to wind up the affairs of a SOLVENT company. It is used to close or wind up a company maybe because the director(s) wish to retire, re-organise or restructure the business or, the company is simply not required any more.
There are many Key Advantages of a Members Voluntary Liquidation:
- Enables high tax rate payers to save money on taxes
- Entrepreneurs relief
- Low tax rates on shareholder distributions
- Extract the value of the business in the form of cash.
- Distribution to shareholders treated as a capital gain and not taxed as income
- Restructure a solvent business
- Resolve shareholder disputes
- An MVL is quick and fairly cheap compared to other restructuring procedures.
Download our useful guide which explains the process of an MVL.
This step by step guide explains the MVL process. Its application to specific situations will depend upon the particular circumstances involved. In order to determine the best option that suits you and your business and to find out what costs are involved we advise talking to a Licensed Insolvency Practitioner like turpin barker armstrong.
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At turpin barker armstrong we offer a free initial meeting with no obligation to proceed. Call us today on 020 8661 7878 or contact Andrew Bailey directly
CLICK HERE TO DOWNLOAD OUR FREE INFOGRAPHIC EXPLAINING MVLs