What are the benefits of a Members’ Voluntary Liquidation (MVL)?

Posted By: James Elliott on 9th June 2017 under

All distributions to shareholders in an MVL are treated as capital rather than income -shareholders can benefit from advantageous tax rates and reliefs;

Pre-MVL tax and accounts can be prepared by your accountant to enable shareholders to gain maximum value;

The new rules relating to the reduction of share capital impose similar requirements on the Company and its directors as an MVL and there will be associated cost implications;

Non-cash assets can be distributed in an MVL in-specie;

Early distributions of capital can be made prior to the liquidation being completed;

In simple cases the costs of MVL are minimal;

The Liquidator is responsible for identifying liabilities, ensuring these are paid and obtaining final tax clearance.