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Members Voluntary Liquidation (MVL)

A tax-efficient way to close a solvent company and release retained profits—handled with care by experienced professionals.

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At Marchford, we support directors who are ready to close a solvent company in the most efficient and compliant way.

Whether you’re retiring, restructuring, or no longer need the company, an MVL allows you to extract remaining profits tax-efficiently while bringing the business to a formal close.

Our team handles the entire process—from preparing the necessary documentation to liaising with shareholders and distributing funds—ensuring everything is done correctly, promptly, and with minimal disruption.

Members Voluntary Liquidation (MVL)

Why Choose Marchford for an MVL?

We have a strong track record of helping directors close solvent companies efficiently and correctly. At Marchford, we care about doing things properly and making the process as smooth and straightforward as possible.

Efficient Profit Extraction

We focus on helping you release retained profits in the most tax-efficient way, making sure you receive the full benefit of a solvent liquidation.

Peace of Mind

We take care of the entire process—handling all formalities, filings, and distributions—so you can step away with clarity and confidence.

Fixed Fees

Our fees are always fixed and fully transparent from the outset, so you always know where you stand. No hidden costs and no surprises, ever.

Specialist Support

We handle MVLs with care and attention, helping you close your company professionally while maintaining your reputation as a director.

If you’d like to speak to one of our team about placing your company into Members’ Voluntary Liquidation, you can request a callback for a free, confidential consultation. Or, if you prefer, request a quote online using our one-minute quote form.

How Marchford Can Support You Through a Members Voluntary Liquidation

If you’ve decided to close a solvent company, an MVL offers a structured, tax-efficient way to bring its affairs to an orderly close. At Marchford, we guide directors through this process with clarity, care, and attention to every detail.

Whether you’re retiring, restructuring, or no longer require the company, we’ll ensure that the process is handled professionally—protecting your interests and delivering a smooth conclusion.

When Should You Consider an MVL?

A Members Voluntary Liquidation may be appropriate if:

  • The company is solvent – It can pay all of its debts in full, usually within 12 months.

  • You’re retiring or stepping away – The company has fulfilled its purpose and you wish to extract remaining funds efficiently.

  • A restructure is planned – You’re reorganising business interests and need to close a subsidiary or dormant entity.

  • There are retained profits – You’re looking to distribute funds to shareholders in a more tax-efficient way, often qualifying for Business Asset Disposal Relief (formerly Entrepreneurs’ Relief).

The Role of the Insolvency Practitioner in an MVL

In an MVL, a licensed insolvency practitioner is appointed to formally wind up the company’s affairs. This includes:

  • Reviewing the company’s financial position

  • Preparing and issuing statutory notices

  • Discharging all liabilities

  • Realising assets and distributing surplus funds to shareholders

  • Filing necessary documentation with Companies House and HMRC

As part of the process, directors must swear a Declaration of Solvency confirming that the company can meet its debts in full, plus interest, within 12 months. This is a legal requirement and forms the foundation of the MVL procedure.

Unlike insolvent liquidation, an MVL does not involve an investigation into directors’ conduct, as the company has met all its obligations. However, accuracy and compliance remain essential throughout.

Choosing Marchford for your MVL means clear advice, straightforward communication, and peace of mind that everything will be handled correctly from start to finish.

For free confidential advice, get in touch today.

Get free, confidential advice today.

Enter your details and a client advisor can find you the right solution.

By submitting this form, I give Marchford permission to contact me. More information can be found in our privacy policy here

Business Advice Expert

Hannah Paull

Director Advice Line: 01752 874856

FAQs: Members Voluntary Liquidation (MVL)

Liquidating your limited company can be a stressful time and for most there may be many questions you havewhich we have answered here.

Please do not hesitate to get in touch if you wish to speak to someone.

An MVL is a formal process used to close a solvent limited company. All debts are paid in full, and remaining funds are distributed to shareholders, often in a tax-efficient manner.

An MVL is suitable when your company is solvent, has no future trading plans, and you want to extract retained profits in a structured, compliant way. Common reasons include retirement, group restructuring, or company dormancy.

To enter an MVL, your company must be able to settle all of its debts—plus any interest—within 12 months. You’ll need to make a formal Declaration of Solvency confirming this.

Funds distributed through an MVL are typically treated as capital, not income. This can make you eligible for Business Asset Disposal Relief (formerly Entrepreneurs’ Relief), reducing Capital Gains Tax to 10%.

It’s a legal statement made by the directors confirming that the company can pay its debts in full, with interest, within 12 months. This must be sworn before entering an MVL.

The process can begin quickly, often within a few days. Full completion depends on factors such as asset realisation and tax clearance, but initial distributions to shareholders are usually made soon after liquidation begins.

They manage the entire process: confirming solvency, preparing and filing documents, settling liabilities, distributing funds, and ensuring all legal and tax requirements are met.

Yes, in most cases. MVL does not restrict your ability to be a director elsewhere or to use a similar company name—though some legal considerations may apply.

Our fees are fixed and clearly explained from the outset. The cost depends on the complexity of the company’s affairs but is usually paid from the company’s own funds before distribution to shareholders.

Yes, and we handle that for you. As part of the MVL process, we notify HMRC, obtain final tax clearance, and ensure all obligations are settled before the company is dissolved.

Thinking About Closing a Solvent Company? We’re Here to Help.

If you’re planning to step away from your business or no longer need the company, a Members’ Voluntary Liquidation could be the most efficient way to close it down.

Speak to a member of our team for clear, confidential advice tailored to your situation. There’s no obligation—just straightforward guidance to help you move forward with confidence.

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