Lots of people get to a stage in their life where they may want to retire, or they want to step down from running a company, but the company has money / net assets, and they want to withdraw it from the company in the most tax efficient way.

A Members Voluntary Liquidation (MVL) is a cost effective and tax efficient exit route. It is the formal process for closing a solvent company where the net assets typically exceed £25,000.

How can an MVL help me?

  • The most advantageous reason for MVLs is any assets / cash distributed are taxed on the shareholders as capital gains tax rather than income tax. This typically means shareholders are taxed at a lower rate.

Some shareholders may be eligible for Business Asset Disposal where business asset gains are taxed at 10% for the first £1m (Lifetime allowance)

  • Monies or assets can be distributed fairly quickly after the company is put into an MVL
  • The timing for distributions can be planned to take place in the most tax efficient tax year for the shareholders.
  • The risk of directors liability can be much lower in an MVL

If you would like an initial free meeting and no obligation quote, please contact Lindsay Farrer on lindsay@saint.co.uk or 01228 534371

Lindsay Farrer