Members Voluntary Liquidation (MVL) in Somerset

At Fast Insolvency, we offer efficient and tax-efficient Members’ Voluntary Liquidation (MVL) services in Somerset 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 in Somerset ensure full compliance, clear communication, and maximum tax benefit for company directors and shareholders.

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

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What Is a Members’ Voluntary Liquidation (MVL)?

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

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

When Should I Use an MVL in Somerset?

You should consider an MVL when your company in Somerset 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 Somerset, making it more beneficial than striking off.

What Are the Benefits of MVL in Somerset?

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

Key benefits in Somerset include:

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

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

• Full support from a licensed insolvency practitioner in Somerset

• Proper closure under UK insolvency law in Somerset

• Faster access to company funds compared to other methods in Somerset

• Reduces long-term liabilities and admin obligations in Somerset

Who Is Eligible for MVL in Somerset?

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

How Much Does MVL Cost in Somerset?

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

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

How Long Does the MVL Process Take in Somerset?

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

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

What Is a Declaration of Solvency in Somerset?

A Declaration of Solvency in Somerset 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 in Somerset.

Do I Need a Liquidator for MVL in Somerset?

Only a licensed insolvency practitioner in Somerset 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 in Somerset?

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

Is MVL Better Than Striking Off in Somerset?

If your company has more than £25,000 in Somerset 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 in Somerset?

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

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

What Happens to Employees in MVL in Somerset?

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

Can I Reuse the Company Name in Somerset?

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

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

Will Creditors Be Paid First in Somerset?

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

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

Get a Free MVL Quote Today in Somerset

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

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

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