Corporate Solvency

Solvent liquidation advice for clients in South East England

At Cullen & Co, our licensed insolvency practitioners are on hand to assist you in closing down your company in a tax efficient manner. Please get in touch with our team in Epsom to discuss the solvent liquidation process further. We can help businesses of all sizes. Our services are available in London and beyond.

What is a Members’ Voluntary Liquidation (MVL)?

An MVL is used for a company that is winding down its operations. It could be that the directors or shareholders are looking to retire, the company was a Specialist Purpose Vehicle (SPV) that has now ended, or the director or shareholder has now found permanent employment and no longer needs to operate through a limited company.

An MVL works for companies that have over £25,000 in reserves, enabling distributions to be made to shareholders to be treated as capital, rather than income. Capital gains tax applies instead of income tax. Shareholders may also fit the criteria to qualify for Business Asset Disposal Relief and pay tax at 10%.
Member's Voluntary Liquidation
process discussion

The MVL process:

  1. Speak to one of our licensed insolvency practitioners to discuss the process and work together to provide all the necessary information.
  2. The director(s) swear a Declaration of Solvency (essentially a company balance sheet).
  3. The shareholders agree to put the company into MVL and appoint a liquidator. The liquidation is updated at Companies House and is advertised in the London Gazette.
  4. The company’s bank account is closed and funds are remitted into a designated liquidation bank account, along with any debtor money.
  5. Creditors are paid and distributions are made to the shareholders.
  6. The liquidation is concluded once authority from HMRC is granted.

 Solvent liquidation experts in London

If you are planning an exit strategy, you will require clear and practical advice. At Cullen & Co, our licensed insolvency practitioners in Epsom can help you throughout the solvent liquidation process. We can help businesses in London and throughout South East England. 
Please get in contact with a member of our team today.
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Expert advice for all types of businesses in London.

Call Cullen & Co of  Epsom on
0203 8877 200
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