How to close a dormant company

If you need to close a dormant company, the appropriate process will depend on the company’s solvent or insolvent position:

  • Solvent
    A solvent dormant company can close via dissolution or a Members Voluntary Liquidation (MVL):
    • Dissolution
      Dissolutions are best suited for solvent companies with little or no assets, with the company struck off the register at Companies House and ceasing to exist.
    • Members Voluntary Liquidation (MVL)
      If the company is solvent with £25,000 or more in assets, a Members Voluntary Liquidation (MVL) can be used to close the company, with the directors potentially benefiting from Business Asset Disposal Relief (formerly Entrepreneurs’ Relief).
  • Insolvent
    An insolvent dormant company shouldn’t attempt to dissolve. Instead, they should close through a formal Creditors Voluntary Liquidation (CVL).

If you want to close your dormant company, whether it is solvent or insolvent, you should seek advice from a licensed insolvency practitioner such as Wilson Field. We will assess your situation and help you decide the best route forward.

If you are a shareholder and the dormant company has no active director – you will need to appoint a new director to close and wind down the company.

How do I close a dormant company that is solvent?

A solvent company has two options to consider when closing:

  • Company dissolution
    A company dissolution is when you close the company by striking it off the register at Companies House. You can strike your solvent dormant company off via a written application to Companies House. Directors usually apply for dissolution when a company has reached the end of its life. Your company should not have traded for at least three months, and you should ensure it has no outstanding legal or insolvency procedures against it.
    More on company dissolution
  • Members voluntary liquidation (MVL)
    A Members Voluntary Liquidation (MVL) is a tax-efficient way to close a solvent dormant company. It strikes the company off the register at Companies House and allows the directors to benefit from Business Asset Disposal Relief (Entrepreneurs’ Relief), reducing the level of Capital Gains Tax due. An MVL is only possible if the company can repay creditors in full, with at least £25,000 left over for distribution to shareholders.
    More on Members Voluntary Liquidations (MVLs)
Wilson Field does not offer individual tax advice. Speaking to an independent tax advisor for more tailored advice.

dormant company

How to close a dormant company that is insolvent

An insolvent company must use the following process to close the company:

  • Creditors Voluntary Liquidation (CVL)
    If you want to close a dormant company but it lacks the funds to repay all creditors in full, a dissolution isn’t suitable. Creditors will object to the strike off, which must be advertised, necessitating a Creditors Voluntary Liquidation (CVL). A CVL closes the insolvent dormant company in an orderly manner. Any assets the company has are sold and distributed equally amongst creditors on a pro-rata basis, with all staff made redundant. Following the Liquidation process, the company is struck off from Companies House and ceases to exist.
    More on Creditors Voluntary Liquidations

How we can help

If you need to close a dormant company, solvent or insolvent, we can help you find the solution best suited to your circumstances. Our experienced initial advice team can assess your company’s circumstances and provide free, confidential advice with no obligation.

  1. Speak with our initial advisers via phone or online chat. If we can help, we will arrange a free consultation with one of our consultants to discuss your circumstances.
  2. During the consultation, we will advise which insolvency procedure is the most appropriate route forward and what alternative options are available.
  3. After your consultation, if there is an appropriate route forward, we will issue the relevant documentation for you to formally engage us.

In summary

There are many factors to consider when closing a dormant company, the primary one being the company’s solvent position. If the company is solvent, a dissolution or a Members Voluntary Liquidation (MVL) would be the best way to close the company. If the company is insolvent, a Creditors Voluntary Liquidation (CVL) would be the appropriate process, closing the company and drawing a line under its debts.

An insolvency practitioner like Wilson Field can determine which option is most appropriate for your company.

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    "Working with Wilson Field as part of my company's MVL and especially Emma was a fantastic experience and thought the explanations, clarity and prompt responses were first class."

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    "Efficient Service Received Wilson Field handled our Members' Voluntary Liquidation in an efficient and timely manner. The process was explained fully and there were no difficulties or problems along the way. Wilson Field were recommended to us and we would also recommend this company."

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    "Very prompt and efficient. Stephen Furbank is a very pleasant guy to deal with - always helpful and clear in his explanations and advice."

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    "I engaged Wilson Field (Leeds office) when I decided to liquidate my company with an MVL. The service Stephen Furbank and his team provided during the period it took to complete the MVL was first rate. There was good communication, advice and information making the process easy and straightforward for me. Many thanks to the professional team at Wilson Field."

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    "Working with Wilson Field as part of my company's MVL and especially Emma was a fantastic experience and thought the explanations, clarity and prompt responses were first class."

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    Richie Thomas

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    "Very prompt and efficient. Stephen Furbank is a very pleasant guy to deal with - always helpful and clear in his explanations and advice."

    Richard Green

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    "I engaged Wilson Field (Leeds office) when I decided to liquidate my company with an MVL. The service Stephen Furbank and his team provided during the period it took to complete the MVL was first rate. There was good communication, advice and information making the process easy and straightforward for me. Many thanks to the professional team at Wilson Field."

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    "Working with Wilson Field as part of my company's MVL and especially Emma was a fantastic experience and thought the explanations, clarity and prompt responses were first class."

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    "Efficient Service Received Wilson Field handled our Members' Voluntary Liquidation in an efficient and timely manner. The process was explained fully and there were no difficulties or problems along the way. Wilson Field were recommended to us and we would also recommend this company."

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    "Stephen worked closely with me every step of the way, and as a person new to this kind of operation. I found it was very reassuring. To have his knowledge and support."

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    "Very prompt and efficient. Stephen Furbank is a very pleasant guy to deal with - always helpful and clear in his explanations and advice."

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    "I engaged Wilson Field (Leeds office) when I decided to liquidate my company with an MVL. The service Stephen Furbank and his team provided during the period it took to complete the MVL was first rate. There was good communication, advice and information making the process easy and straightforward for me. Many thanks to the professional team at Wilson Field."

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    "Working with Wilson Field as part of my company's MVL and especially Emma was a fantastic experience and thought the explanations, clarity and prompt responses were first class."

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    "Very prompt and efficient. Stephen Furbank is a very pleasant guy to deal with - always helpful and clear in his explanations and advice."

    Richard Green

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    "I engaged Wilson Field (Leeds office) when I decided to liquidate my company with an MVL. The service Stephen Furbank and his team provided during the period it took to complete the MVL was first rate. There was good communication, advice and information making the process easy and straightforward for me. Many thanks to the professional team at Wilson Field."

    bijal shah

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    "Working with Wilson Field as part of my company's MVL and especially Emma was a fantastic experience and thought the explanations, clarity and prompt responses were first class."

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    "Efficient Service Received Wilson Field handled our Members' Voluntary Liquidation in an efficient and timely manner. The process was explained fully and there were no difficulties or problems along the way. Wilson Field were recommended to us and we would also recommend this company."

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    "Stephen worked closely with me every step of the way, and as a person new to this kind of operation. I found it was very reassuring. To have his knowledge and support."

    Richie Thomas

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    "Very prompt and efficient. Stephen Furbank is a very pleasant guy to deal with - always helpful and clear in his explanations and advice."

    Richard Green

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    "I engaged Wilson Field (Leeds office) when I decided to liquidate my company with an MVL. The service Stephen Furbank and his team provided during the period it took to complete the MVL was first rate. There was good communication, advice and information making the process easy and straightforward for me. Many thanks to the professional team at Wilson Field."

    bijal shah

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    "Working with Wilson Field as part of my company's MVL and especially Emma was a fantastic experience and thought the explanations, clarity and prompt responses were first class."

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    "Efficient Service Received Wilson Field handled our Members' Voluntary Liquidation in an efficient and timely manner. The process was explained fully and there were no difficulties or problems along the way. Wilson Field were recommended to us and we would also recommend this company."

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    "Stephen worked closely with me every step of the way, and as a person new to this kind of operation. I found it was very reassuring. To have his knowledge and support."

    Richie Thomas

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    "Very prompt and efficient. Stephen Furbank is a very pleasant guy to deal with - always helpful and clear in his explanations and advice."

    Richard Green

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    "I engaged Wilson Field (Leeds office) when I decided to liquidate my company with an MVL. The service Stephen Furbank and his team provided during the period it took to complete the MVL was first rate. There was good communication, advice and information making the process easy and straightforward for me. Many thanks to the professional team at Wilson Field."

    bijal shah

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    "Working with Wilson Field as part of my company's MVL and especially Emma was a fantastic experience and thought the explanations, clarity and prompt responses were first class."

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    "Efficient Service Received Wilson Field handled our Members' Voluntary Liquidation in an efficient and timely manner. The process was explained fully and there were no difficulties or problems along the way. Wilson Field were recommended to us and we would also recommend this company."

    Patrick Finn

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    "Stephen worked closely with me every step of the way, and as a person new to this kind of operation. I found it was very reassuring. To have his knowledge and support."

    Richie Thomas

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    "Very prompt and efficient. Stephen Furbank is a very pleasant guy to deal with - always helpful and clear in his explanations and advice."

    Richard Green

    star_rate star_rate star_rate star_rate star_rate

    "I engaged Wilson Field (Leeds office) when I decided to liquidate my company with an MVL. The service Stephen Furbank and his team provided during the period it took to complete the MVL was first rate. There was good communication, advice and information making the process easy and straightforward for me. Many thanks to the professional team at Wilson Field."

    bijal shah

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    "Working with Wilson Field as part of my company's MVL and especially Emma was a fantastic experience and thought the explanations, clarity and prompt responses were first class."

    BarbaraM-405

    star_rate star_rate star_rate star_rate star_rate

    "Efficient Service Received Wilson Field handled our Members' Voluntary Liquidation in an efficient and timely manner. The process was explained fully and there were no difficulties or problems along the way. Wilson Field were recommended to us and we would also recommend this company."

    Patrick Finn

    star_rate star_rate star_rate star_rate star_rate

    "Stephen worked closely with me every step of the way, and as a person new to this kind of operation. I found it was very reassuring. To have his knowledge and support."

    Richie Thomas

    star_rate star_rate star_rate star_rate star_rate

    "Very prompt and efficient. Stephen Furbank is a very pleasant guy to deal with - always helpful and clear in his explanations and advice."

    Richard Green

    star_rate star_rate star_rate star_rate star_rate

    "I engaged Wilson Field (Leeds office) when I decided to liquidate my company with an MVL. The service Stephen Furbank and his team provided during the period it took to complete the MVL was first rate. There was good communication, advice and information making the process easy and straightforward for me. Many thanks to the professional team at Wilson Field."

    bijal shah

    star_rate star_rate star_rate star_rate star_rate

    "Working with Wilson Field as part of my company's MVL and especially Emma was a fantastic experience and thought the explanations, clarity and prompt responses were first class."

    BarbaraM-405

    star_rate star_rate star_rate star_rate star_rate

    "Efficient Service Received Wilson Field handled our Members' Voluntary Liquidation in an efficient and timely manner. The process was explained fully and there were no difficulties or problems along the way. Wilson Field were recommended to us and we would also recommend this company."

    Patrick Finn

    star_rate star_rate star_rate star_rate star_rate

    "Stephen worked closely with me every step of the way, and as a person new to this kind of operation. I found it was very reassuring. To have his knowledge and support."

    Richie Thomas

    star_rate star_rate star_rate star_rate star_rate

    "Very prompt and efficient. Stephen Furbank is a very pleasant guy to deal with - always helpful and clear in his explanations and advice."

    Richard Green

    star_rate star_rate star_rate star_rate star_rate

    "I engaged Wilson Field (Leeds office) when I decided to liquidate my company with an MVL. The service Stephen Furbank and his team provided during the period it took to complete the MVL was first rate. There was good communication, advice and information making the process easy and straightforward for me. Many thanks to the professional team at Wilson Field."

    bijal shah

    star_rate star_rate star_rate star_rate star_rate

    "Working with Wilson Field as part of my company's MVL and especially Emma was a fantastic experience and thought the explanations, clarity and prompt responses were first class."

    BarbaraM-405

    star_rate star_rate star_rate star_rate star_rate

    "Efficient Service Received Wilson Field handled our Members' Voluntary Liquidation in an efficient and timely manner. The process was explained fully and there were no difficulties or problems along the way. Wilson Field were recommended to us and we would also recommend this company."

    Patrick Finn

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    "Stephen worked closely with me every step of the way, and as a person new to this kind of operation. I found it was very reassuring. To have his knowledge and support."

    Richie Thomas

    star_rate star_rate star_rate star_rate star_rate

    "Very prompt and efficient. Stephen Furbank is a very pleasant guy to deal with - always helpful and clear in his explanations and advice."

    Richard Green

    star_rate star_rate star_rate star_rate star_rate

    "I engaged Wilson Field (Leeds office) when I decided to liquidate my company with an MVL. The service Stephen Furbank and his team provided during the period it took to complete the MVL was first rate. There was good communication, advice and information making the process easy and straightforward for me. Many thanks to the professional team at Wilson Field."

    bijal shah

    star_rate star_rate star_rate star_rate star_rate

    "Working with Wilson Field as part of my company's MVL and especially Emma was a fantastic experience and thought the explanations, clarity and prompt responses were first class."

    BarbaraM-405

    star_rate star_rate star_rate star_rate star_rate

    "Efficient Service Received Wilson Field handled our Members' Voluntary Liquidation in an efficient and timely manner. The process was explained fully and there were no difficulties or problems along the way. Wilson Field were recommended to us and we would also recommend this company."

    Patrick Finn

    star_rate star_rate star_rate star_rate star_rate

    "Stephen worked closely with me every step of the way, and as a person new to this kind of operation. I found it was very reassuring. To have his knowledge and support."

    Richie Thomas

    star_rate star_rate star_rate star_rate star_rate

    "Very prompt and efficient. Stephen Furbank is a very pleasant guy to deal with - always helpful and clear in his explanations and advice."

    Richard Green

    star_rate star_rate star_rate star_rate star_rate

    "I engaged Wilson Field (Leeds office) when I decided to liquidate my company with an MVL. The service Stephen Furbank and his team provided during the period it took to complete the MVL was first rate. There was good communication, advice and information making the process easy and straightforward for me. Many thanks to the professional team at Wilson Field."

    bijal shah

    star_rate star_rate star_rate star_rate star_rate

    "Working with Wilson Field as part of my company's MVL and especially Emma was a fantastic experience and thought the explanations, clarity and prompt responses were first class."

    BarbaraM-405

    star_rate star_rate star_rate star_rate star_rate

    "Efficient Service Received Wilson Field handled our Members' Voluntary Liquidation in an efficient and timely manner. The process was explained fully and there were no difficulties or problems along the way. Wilson Field were recommended to us and we would also recommend this company."

    Patrick Finn

    star_rate star_rate star_rate star_rate star_rate

    "Stephen worked closely with me every step of the way, and as a person new to this kind of operation. I found it was very reassuring. To have his knowledge and support."

    Richie Thomas

    star_rate star_rate star_rate star_rate star_rate

    "Very prompt and efficient. Stephen Furbank is a very pleasant guy to deal with - always helpful and clear in his explanations and advice."

    Richard Green

    star_rate star_rate star_rate star_rate star_rate

    "I engaged Wilson Field (Leeds office) when I decided to liquidate my company with an MVL. The service Stephen Furbank and his team provided during the period it took to complete the MVL was first rate. There was good communication, advice and information making the process easy and straightforward for me. Many thanks to the professional team at Wilson Field."

    bijal shah

    star_rate star_rate star_rate star_rate star_rate

    "Working with Wilson Field as part of my company's MVL and especially Emma was a fantastic experience and thought the explanations, clarity and prompt responses were first class."

    BarbaraM-405

    star_rate star_rate star_rate star_rate star_rate

    "Efficient Service Received Wilson Field handled our Members' Voluntary Liquidation in an efficient and timely manner. The process was explained fully and there were no difficulties or problems along the way. Wilson Field were recommended to us and we would also recommend this company."

    Patrick Finn

    star_rate star_rate star_rate star_rate star_rate

    "Stephen worked closely with me every step of the way, and as a person new to this kind of operation. I found it was very reassuring. To have his knowledge and support."

    Richie Thomas

    star_rate star_rate star_rate star_rate star_rate

    "Very prompt and efficient. Stephen Furbank is a very pleasant guy to deal with - always helpful and clear in his explanations and advice."

    Richard Green

    star_rate star_rate star_rate star_rate star_rate

    "I engaged Wilson Field (Leeds office) when I decided to liquidate my company with an MVL. The service Stephen Furbank and his team provided during the period it took to complete the MVL was first rate. There was good communication, advice and information making the process easy and straightforward for me. Many thanks to the professional team at Wilson Field."

    bijal shah

    star_rate star_rate star_rate star_rate star_rate

    "Working with Wilson Field as part of my company's MVL and especially Emma was a fantastic experience and thought the explanations, clarity and prompt responses were first class."

    BarbaraM-405

    star_rate star_rate star_rate star_rate star_rate

    "Efficient Service Received Wilson Field handled our Members' Voluntary Liquidation in an efficient and timely manner. The process was explained fully and there were no difficulties or problems along the way. Wilson Field were recommended to us and we would also recommend this company."

    Patrick Finn

    star_rate star_rate star_rate star_rate star_rate

    "Stephen worked closely with me every step of the way, and as a person new to this kind of operation. I found it was very reassuring. To have his knowledge and support."

    Richie Thomas

    star_rate star_rate star_rate star_rate star_rate

    "Very prompt and efficient. Stephen Furbank is a very pleasant guy to deal with - always helpful and clear in his explanations and advice."

    Richard Green

    star_rate star_rate star_rate star_rate star_rate

    "I engaged Wilson Field (Leeds office) when I decided to liquidate my company with an MVL. The service Stephen Furbank and his team provided during the period it took to complete the MVL was first rate. There was good communication, advice and information making the process easy and straightforward for me. Many thanks to the professional team at Wilson Field."

    bijal shah

    star_rate star_rate star_rate star_rate star_rate

    "Working with Wilson Field as part of my company's MVL and especially Emma was a fantastic experience and thought the explanations, clarity and prompt responses were first class."

    BarbaraM-405

    star_rate star_rate star_rate star_rate star_rate

    "Efficient Service Received Wilson Field handled our Members' Voluntary Liquidation in an efficient and timely manner. The process was explained fully and there were no difficulties or problems along the way. Wilson Field were recommended to us and we would also recommend this company."

    Patrick Finn

    star_rate star_rate star_rate star_rate star_rate

    "Stephen worked closely with me every step of the way, and as a person new to this kind of operation. I found it was very reassuring. To have his knowledge and support."

    Richie Thomas

    star_rate star_rate star_rate star_rate star_rate

    "Very prompt and efficient. Stephen Furbank is a very pleasant guy to deal with - always helpful and clear in his explanations and advice."

    Richard Green

    star_rate star_rate star_rate star_rate star_rate

    "I engaged Wilson Field (Leeds office) when I decided to liquidate my company with an MVL. The service Stephen Furbank and his team provided during the period it took to complete the MVL was first rate. There was good communication, advice and information making the process easy and straightforward for me. Many thanks to the professional team at Wilson Field."

    bijal shah

    star_rate star_rate star_rate star_rate star_rate

    "Working with Wilson Field as part of my company's MVL and especially Emma was a fantastic experience and thought the explanations, clarity and prompt responses were first class."

    BarbaraM-405

    star_rate star_rate star_rate star_rate star_rate

    "Efficient Service Received Wilson Field handled our Members' Voluntary Liquidation in an efficient and timely manner. The process was explained fully and there were no difficulties or problems along the way. Wilson Field were recommended to us and we would also recommend this company."

    Patrick Finn

    star_rate star_rate star_rate star_rate star_rate

    "Stephen worked closely with me every step of the way, and as a person new to this kind of operation. I found it was very reassuring. To have his knowledge and support."

    Richie Thomas

    star_rate star_rate star_rate star_rate star_rate

    "Very prompt and efficient. Stephen Furbank is a very pleasant guy to deal with - always helpful and clear in his explanations and advice."

    Richard Green

    star_rate star_rate star_rate star_rate star_rate

    "I engaged Wilson Field (Leeds office) when I decided to liquidate my company with an MVL. The service Stephen Furbank and his team provided during the period it took to complete the MVL was first rate. There was good communication, advice and information making the process easy and straightforward for me. Many thanks to the professional team at Wilson Field."

    bijal shah

    star_rate star_rate star_rate star_rate star_rate

    "Working with Wilson Field as part of my company's MVL and especially Emma was a fantastic experience and thought the explanations, clarity and prompt responses were first class."

    BarbaraM-405

    star_rate star_rate star_rate star_rate star_rate

    "Efficient Service Received Wilson Field handled our Members' Voluntary Liquidation in an efficient and timely manner. The process was explained fully and there were no difficulties or problems along the way. Wilson Field were recommended to us and we would also recommend this company."

    Patrick Finn

    star_rate star_rate star_rate star_rate star_rate

    "Stephen worked closely with me every step of the way, and as a person new to this kind of operation. I found it was very reassuring. To have his knowledge and support."

    Richie Thomas

    star_rate star_rate star_rate star_rate star_rate

    "Very prompt and efficient. Stephen Furbank is a very pleasant guy to deal with - always helpful and clear in his explanations and advice."

    Richard Green

    star_rate star_rate star_rate star_rate star_rate

    "I engaged Wilson Field (Leeds office) when I decided to liquidate my company with an MVL. The service Stephen Furbank and his team provided during the period it took to complete the MVL was first rate. There was good communication, advice and information making the process easy and straightforward for me. Many thanks to the professional team at Wilson Field."

    bijal shah

    star_rate star_rate star_rate star_rate star_rate

    "Working with Wilson Field as part of my company's MVL and especially Emma was a fantastic experience and thought the explanations, clarity and prompt responses were first class."

    BarbaraM-405

    star_rate star_rate star_rate star_rate star_rate

    "Efficient Service Received Wilson Field handled our Members' Voluntary Liquidation in an efficient and timely manner. The process was explained fully and there were no difficulties or problems along the way. Wilson Field were recommended to us and we would also recommend this company."

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