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 £1,995 + 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 £1,995 + 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.

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 is split into two different sections, the liquidators’ fees, which involves all the work and duties carried out by our insolvency practitioner, and the expenses, which are a mandatory part of the MVL process.

£1,995 + VAT & expenses

This is for a straightforward MVL where the company has no outstanding liabilities and all assets have been turned into cash.

£3,995 + VAT & expenses

If the liquidation of your company is more complex and there are outstanding liabilities to be settled or assets to be distributed in specie, our £3,995 MVL option would be the most appropriate.

£4,495 + VAT & expenses

If you are due any HMRC refunds the fee for an MVL would be £4,495.

Bespoke MVL + VAT & expenses

With our bespoke MVL, we will arrange the valuation and sale of any physical assets and deal with any disputed creditor claims against your company. We also offer a free face-to-face meeting with one of our consultants, as well as providing constant support and guidance throughout the process.

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.

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Liquidators Fee	£1,995 MVL	£3,995 MVL	£4,495 MVL	Bespoke MVL
Transfer of monies.	Cash at bank transferred to us prior to appointment	✓	✓	✓
Outstanding liabilities (creditors to pay). Handling all outstanding creditor liabilities. Adjudicating on claims and settling them with the appropriate rate of statutory interest applied.		✓	✓	✓
Assets distributed in specie Distributing in specie any tangible assets, such as directors’ loans, stocks and shares. Read more on Distribution in Specie.		Directors Loans Title to assets (excl property & shares)	Directors Loans Title to assets (excl property & shares)	Property Stocks, Shares & Investment
HMRC Refunds Any HMRC rebate’s that the company are due.			Tax refunds VAT refunds	Section 455
Physical assets to be realised. The valuation of company assets and sale at auction. Collection of book debts, HMRC refunds and S458 repayments.				✓
HMRC investigations & disputed creditor claims Dealing with any HMRC investigations or enquiries with the assistance of the company accountants.				✓
Active pension schemes.				✓
Restructuring MVL (Section 110) A solvent liquidation process allowing you to reorganise a company into two or more companies, splitting the trader, or ownership of shares. Read more on MVL Section 110				✓
More than 3 shareholders to be distributed If there are more than 3 shareholders an additional £100 + VAT per shareholder will be added to your quoted fee.	+ £100 + VAT per additional shareholder	+ £100 + VAT per additional shareholder	+ £100 + VAT per additional shareholder	Included with quote
*If required we offer a face to face consultation with our bespoke MVL package.

Expenses

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:

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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 £108.20 + VAT each.	£324.60 + 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 £25,001 to £50,000	£30 + VAT
Between £50,001 to £100,000	£52.50 + VAT
Between £100,001 to £250,000	£80.00 + VAT
Between £250,001 to £500,000	£110.00 + VAT
Between £500,001 to £1,000,000	£145.50 + VAT
Between £1,000,001 to £2,000,000	£232.00 + VAT
Between £2,000,001 to £3,500,000	£290.00 + VAT
Between £3,500,001 to £5,000,000	£347.00 + VAT
Over £5,000,001	£420 + 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.

In summary

Our Members Voluntary Liquidation cost starts at a fixed fee of £1,995 + 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 £3,995 + VAT. In the case of more complex MVLs, we offer a bespoke package to meet the individual needs of the company.

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, with no hidden costs. 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.

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