A Member’s Voluntary Liquidation (MVL) is typically proposed when a company is no longer required. It is a tax-efficient way to distribute company assets amongst shareholders, allowing them to claim Business Asset Disposal Relief (formerly Entrepreneurs’ Relief) should they meet the relevant criteria.

Our standard MVL cost is £995 + VAT & expenses; however, this can vary depending on the nature and complexity of the liquidation.

The cost of an MVL

Our standard cost of an MVL is a fixed fee of £995 + VAT & expenses. This standard fee applies to cases where the company’s only asset is cash at bank, and all liabilities have been settled. If the case is more complex and there is a need for physical assets to be realised, outstanding liabilities to be paid, or assets to be distributed in specie, then our fees will be higher.

MVL pricing structure

Our costing for an MVL has a pricing structure which is based on a four-tiered system designed to suit the individual requirements of each company. The cost of an MVL is split into three different sections: the liquidators’ fee, which involves all the work and duties carried out by our insolvency practitioner; the liquidators’ insurance bond; and the expenses, which are a mandatory part of the MVL process.

• £995 + VAT + expenses – Simple MVL with in specie distribution
  This option is for straightforward companies where there are no other matters to be dealt with as part of the liquidation. The company’s remaining value is held as cash at bank or a director’s loan account balance and can be distributed in specie. An in specie distribution can allow company funds to be distributed on day one of the liquidation, subject to the company meeting the required criteria.
• £1,995 + VAT + expenses – Simple MVL with physical cash distribution
  This option is for straightforward companies where there are no other matters to be dealt with as part of the liquidation. The liquidator will receive the company’s cash into the liquidation and physically distribute it to shareholders. The company funds will be distributed to shareholders in line with their shareholdings once the cash has been received into the liquidation.
• £2,500 + VAT + expenses – MVL with HMRC tax or VAT refund claims
  This option is for otherwise straightforward companies where corporation tax or VAT refunds need to be claimed from HMRC as part of the liquidation. This may be suitable whether the company’s existing funds are distributed in specie or by physical cash distribution.
  This may apply where the company has:
  • The company is due a corporation tax refund
  • The company is due a VAT refund
  • The refund needs to be received into the liquidation and distributed to shareholders

This tier is designed for MVLs where the main additional work is claiming corporation tax or VAT refunds from HMRC.

• Bespoke fee – Complex MVL
  Some MVLs need a bespoke quote because of the nature of the company and its position.
  This may apply where the company has:
  • Property, shares, investments or other assets
  • Assets that need to be sold or realised
  • Section 455 tax refunds
  • HMRC enquiries or investigations
  • Outstanding or disputed creditor claims
  • Active pension schemes
  • More complex shareholder or distribution requirements
  • Solvent restructuring requirements, including Section 110 reorganisations

A bespoke fee will be confirmed once we understand the company’s position and the work required.

Shareholder note: Where there are more than three shareholders to receive a distribution, an additional £100 + VAT per additional shareholder is added to the liquidators’ fee.

All tiers include the option for an in-specie distribution of company funds (a potential “day-1” distribution), subject to a final corporation tax return being provided.

Liquidator fees

There are certain duties that the liquidator must undertake, such as the drafting and submission of statutory paperwork to Companies House, the calculation and distribution of company funds to shareholders, and liaising with HM Revenue & Customs to obtain clearance for the liquidation to be completed and the company dissolved.

The table below details our pricing structure and provides a breakdown of the items covered in each price bracket. Please note that if your company has several assets that fall under more than one category, your case will fall into the bespoke MVL price, e.g., an HMRC refund, fixtures & fittings, and a director’s loan account. Every company is different, and we can offer a bespoke package if required.

Swipe to explore more

Criteria	£995	£1,995	£2,500	Bespoke
Distribution of funds
In specie distribution Shareholders can withdraw the company funds in line with their shareholding, allowing the distribution to occur on day 1 of the liquidation (subject to certain criteria).	✓	✓	✓	✓
Physical cash distribution We’ll distribute available cash to shareholders in line with shareholdings once the cash has been received from the company bank account.		✓	✓	✓
Distribution of other assets
Title to property, shares & investments We’ll transfer legal title in property and/or shares & investments to shareholders by way of an in specie distribution.				✓
Realisation of assets We’ll turn all assets into cash (e.g. market & sell property, collect book debts), then distribute the proceeds to shareholders.				✓
HMRC
Tax / VAT refunds We’ll claim any corporation tax or VAT refunds due to the company from HMRC as part of the liquidation process.			✓	✓
Section 455 tax refunds We’ll claim any Section 455 tax refunds due to the company from HMRC as part of the liquidation process.				✓
HMRC Investigations We’ll correspond with HMRC on enquiries/investigations and work alongside your accountants to resolve matters efficiently.				✓
Other criteria
Outstanding liabilities We’ll adjudicate on creditor claims and settle agreed liabilities, calculating & applying statutory interest where required.				✓
Disputed creditor claims We’ll review and deal with disputed claims, engaging with creditors and advisors to reach an appropriate outcome.				✓
Active pension schemes We’ll deal with the closure of any active company pension schemes.				✓
Restructuring MVL (Section 110) A solvent reorganisation via s.110 to split a business or shareholdings into two or more companies. Read more on MVL Section 110				✓
More than 3 shareholders to be distributed If more than three shareholders are to receive a distribution, £100 + VAT will be added to the liquidator’s fee per additional shareholder.	+ £100 + VAT per additional shareholder
*If required we offer a face to face consultation with our bespoke MVL package.

Expenses & Liquidator insurance bond

There are several statutory expenses incurred as part of the liquidation process. These are part of a Members Voluntary Liquidation’s cost and are as follows:

Swipe to explore more

Expenses	Cost £
Three statutory Advertisements The Notice of Appointment of the Liquidator. Winding Up Resolutions. Notice to Creditors to Submit Claims. Three statutory advertisements are required in the London Gazette at £115.30 + VAT each.	£345.90 + VAT total cost
Postage costs Cost to be confirmed based on various factors such as number of directors and shareholders.	Cost based on the number of letters sent during the lifetime of the liquidation
Liquidator’s insurance bond - based on asset value Cost of the insurance bond is based on the value of assets that the company has.
Between £0 to £500	£10 + VAT
Between £501 to £10,000	£10 + VAT
Between £10,001 to £25,000	£10 + VAT
Between £25,001 to £50,000	£10 + VAT
Between £50,001 to £100,000	£22.00 + VAT
Between £100,001 to £250,000	£37.50 + VAT
Between £250,001 to £500,000	£62.50 + VAT
Between £500,001 to £1,000,000	£82.50 + VAT
Between £1,000,001 to £2,000,000	£150.00 + VAT
Between £2,000,001 to £5,000,000	£175.00 + VAT
Over £5,000,000	£200 + VAT
If a higher bond is required, please enquire

Business Asset Disposal Relief (formerly Entrepreneurs’ Relief)

The provisions of Business Asset Disposal Relief (Entrepreneurs’ Relief) mean that an MVL is a tax-efficient way for shareholders to withdraw their funds from the company rather than by taking it out as a dividend. The distribution of company assets through an MVL allows shareholders to claim Entrepreneurs’ Relief should they be eligible. An MVL is a formal procedure governed by the Insolvency Act 1986 and must be carried out by a licensed insolvency practitioner.

How we can help

If you have a solvent company which you believe has come to the end of its natural life span and you want to extract the assets from the company in a tax-efficient manner, it’s important to know the options available to you.

We can offer you a fixed fee service, for the cost of an MVL, with no hidden extras. All work is carried out by one of our licensed insolvency practitioners, assisted by a dedicated caseworker who will guide you through the liquidation process.

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 situation in more depth.
2. During the consultation, we will advise if an insolvency procedure is the most appropriate route forward, or 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

Our Members Voluntary Liquidation cost starts at a fixed fee of £995 + VAT & expenses for a standard MVL. If all creditors have been paid and there is only cash at bank left to distribute, the liquidation process should run smoothly and hence there should be less work involved. If there are other assets to realise or creditors to pay, this involves more work, and hence our fixed fee will increase to £1,995 + VAT. In the case of more complex MVLs, we offer a bespoke package to meet the individual needs of the company.

💬 Live Chat - Available

✅ Free confidential help & advice

If you or your company is in financial difficulty, I may be able to help you. Our phone lines operate 9am until 9pm - 7 days a week.

Chat With MeFor immediate help & free advice, please freephone:

Free Consultation

Request a free confidential telephone consultation from 9am - 8pm, 7 days a week.

Schedule a Call

Back

Please leave this field empty.