Members Voluntary Liquidation
“when you are not insolvent “
A Members Voluntary Liquidation (MVL) Arrangement is a process of unlocking the assets in your business. Unlike insolvent businesses your business will be solvent and this is a method of enabling the shareholders of the business to have a tax efficient return of their investment. The benefits are mainly tax related where the distribution of funds to shareholders is treated as capital rather than income, plus this can enable entrepreneurs relief where applicable.
This is quite typical where directors may wish to retire or when the business does not see a continued future before it may become insolvent.
An MVL typically last for up to 12 months, during which time any creditors of the business must have been paid in full.
Whilst some aspects may appear complicated we can help you decide if an MVL is the right route to take.