Member Voluntary Liquidation (MVL) Services
If you’re looking to close a solvent limited company in a tax-efficient way, a Members’ Voluntary Liquidation (MVL) could be the ideal solution. At Henderson Loggie, we provide expert guidance to help directors maximise returns, minimise tax liabilities, and ensure a smooth and compliant company closure.
What is a Members Voluntary Liquidation?
A Members’ Voluntary Liquidation (MVL) is a formal process used to close a solvent limited company. It is designed for businesses that can pay all of their debts in full, typically within 12 months.
During an MVL, an appointed insolvency practitioner liquidates the company’s assets, settles any outstanding liabilities, and distributes the remaining funds to shareholders.
This process is commonly used by directors who are:
- Retiring or stepping away from business
- Restructuring or simplifying group companies
- Closing a business that is no longer required
Seeking a tax-efficient way to extract retained profits
Is an MVL right for your business?
An MVL may be the best option if your company:
- Is solvent (able to pay all debts in full)
- Has retained profits of £25,000 or more
- No longer serves a purpose or is being wound down
- Has shareholders looking to extract funds tax efficiently
If your company has lower retained profits, an informal strike-off may be more suitable, although it may not offer the same tax advantages.
At Henderson Loggie, we assess your circumstances and explain whether an MVL is the most beneficial route for you.
The MVL Process Explained
The MVL process, or Member Voluntary Liquidation, follows a structured legal procedure:
1. Declaration of Solvency
Directors formally confirm the company can meet all liabilities.
2. Shareholder Resolution
Shareholders pass a resolution to wind up the company.
3. Appointment of Insolvency Practitioner
A licensed insolvency practitioner is appointed as the liquidator.
4. Asset Realisation
Company assets are sold or distributed.
5. Settlement of Liabilities
All creditors are paid in full.
6. Distribution to Shareholders
Remaining funds are distributed as capital.
7. Company Dissolution
The company is formally removed from the Companies House register.
We have licenced insolvency practitioners to ensure the process runs efficiently and compliantly.
Tax Benefits of a Members’ Voluntary Liquidation
One of the key advantages of an MVL is its potential tax efficiency.
Funds distributed through an MVL are treated as capital rather than income, meaning:
- You may benefit from Capital Gains Tax (CGT) rates instead of higher dividend tax rates
- Eligible shareholders can claim Business Asset Disposal Relief (BADR) (formerly Entrepreneurs’ Relief)
- This can lower the tax rate on qualifying gains
Compared to withdrawing profits as dividends, this can result in significant tax savings.
We can work alongside your tax advisers, or our in-house tax team, to ensure the process is structured efficiently and remains compliant with HMRC requirements.
Why Choose Henderson Loggie for MVL Advice?
Choosing the right advisors is essential when considering an MVL. At Henderson Loggie, we offer:
- Licensed insolvency practitioner expertise: Direct access to experienced IPs who manage and oversee the entire MVL process
- Practical, commercially focused advice: Clear guidance tailored to your circumstances, with a focus on achieving the right outcome
- Tax-efficient planning: Working with your advisers or our in-house team to ensure a compliant and efficient outcome
- End-to-end support: From initial consultation to final distribution
- Clear, transparent advice: No jargon, just straightforward guidance you can trust
Our goal is to make your company closure simple, compliant, and financially optimised.
Member Voluntary Liquidation FAQ's
How long does an MVL take?
How much does an MVL cost?
Is an MVL tax efficient?
What happens to retained profits?
Can I close my company without an MVL?
Does closing a limited company affect your credit score?
Do I need an insolvency practitioner?
Meet Our Licensed Insolvency Practitioners
Shona Campbell
Chair & Partner
Margaret Linn
Manager
Lianne Fraser Lusher
Manager
Lynn Barr
Assistant Manager
Kirstin Drummond
Assistant Manager
Speak to Henderson Loggie About MVL Services
If you’re considering closing your company, get in touch today. Our expert team will guide you through your options and help you achieve the most tax-efficient outcome.
