Members Voluntary Liquidation (MVL)

At Fast Insolvency, we offer efficient and tax-efficient Members’ Voluntary Liquidation (MVL) services to help directors close solvent companies and extract retained profits. An MVL is ideal if your business has fulfilled its purpose, you're retiring, or you're restructuring.

Our licensed practitioners ensure full compliance, clear communication, and maximum tax benefit for company directors and shareholders.

Contact us today for a free consultation and fixed-fee MVL quote from a licensed insolvency practitioner.

Get in touch

What Is a Members’ Voluntary Liquidation (MVL)?

An MVL is a formal process for closing a solvent limited company that can pay all its debts in full, usually within 12 months.

It allows shareholders to extract surplus funds in a tax-efficient manner, often qualifying for Business Asset Disposal Relief (formerly known as Entrepreneurs’ Relief).

When Should I Use an MVL?

You should consider an MVL when your company is no longer needed, such as after a trade sale, group reorganisation, or retirement.

It is the preferred route when the company has net assets over £25,000 in , making it more beneficial than striking off.

What Are the Benefits of MVL?

An MVL provides a fast, legal, and tax-efficient way to close a solvent company.

Key benefits include:

• Cash extraction at capital gains tax rates, not income tax

• Potential eligibility for 10% tax under Business Asset Disposal Relief

• Full support from a licensed insolvency practitioner in

• Proper closure under UK insolvency law

• Faster access to company funds compared to other methods

• Reduces long-term liabilities and admin obligations

Who Is Eligible for MVL?

Only solvent companies can enter MVL. Directors must swear a Declaration of Solvency in , confirming the company can pay all its debts, interest, and liabilities within 12 months of liquidation.

How Much Does MVL Cost?

A straightforward MVL costs between £1,000 and £3,000 plus VAT.

At Fast Insolvency, we offer fixed-fee MVL packages in for companies with uncomplicated finances and no contingent liabilities.

How Long Does the MVL Process Take?

The MVL process can be completed in as little as 2 to 3 weeks in for straightforward cases.

The overall timeline depends on the clearance of tax obligations, asset distribution, and final account closure.

What Is a Declaration of Solvency?

A Declaration of Solvency is a legal statement made by the directors confirming that the company can settle all its debts, including interest, within 12 months.

This must be signed before the shareholders can pass the MVL resolution.

Do I Need a Liquidator for MVL?

Only a licensed insolvency practitioner can act as liquidator in an MVL. They handle asset distribution, creditor notifications, company deregistration, and final filings with Companies House.

Can Directors Claim Distributions Tax-Efficiently?

Funds distributed via MVL are usually taxed as capital gains rather than income, and directors/shareholders may qualify for Business Asset Disposal Relief paying 10% CGT on eligible amounts.

Is MVL Better Than Striking Off?

If your company has more than £25,000 in retained profits or assets. Striking off results in distributions being taxed as dividends, whereas MVL enables you to benefit from capital tax treatment.

Can HMRC Object to an MVL?

HMRC may object if there are outstanding tax returns in , VAT issues, or unresolved PAYE.

We ensure all HMRC accounts are up to date before submitting MVL paperwork to avoid delays.

What Happens to Employees in MVL?

If the company has employees, they are usually made redundant as part of the process. Redundancy payments are settled before any distributions to shareholders.

Can I Reuse the Company Name?

If the company is dissolved through MVL, you may reuse the name in future. 

However, this should be done cautiously to avoid misleading creditors or violating Section 216 rules, especially in related insolvency events.

Will Creditors Be Paid First?

Before any funds are distributed to shareholders, all creditors and liabilities must be paid in full.

Only after debts are settled can the remaining assets be distributed among shareholders.

Get a Free MVL Quote Today

If you’re ready to close a solvent company, we can help you extract funds tax-efficiently and complete the process with confidence.

We offer affordable, efficient MVL services with expert guidance, fixed fees, and quick turnaround.

Contact Fast Insolvency now for a free consultation and fixed-fee MVL proposal tailored to your company.