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 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.

• £995 MVL – Cash at bank/director’s loan account
  For straightforward solvent closures. Includes in-specie (“day-1”) distribution of company funds in accordance with the company shareholding. Does not include handling creditor payments or physical distribution of company funds. Shareholders should withdraw the cash prior to liquidation in line with their shareholding.
  Best for: clean balance sheet; no creditors; only cash at bank or director’s loan account; no HMRC refunds.

• £3,995 MVL – Creditor payments included
  Everything in £1,995, plus the credit balance on the company bank account, will be transferred to the client account for the liquidation, and a physical cash distribution will be declared. Also includes payment of creditor claims (incl. statutory interest, where required).
  Best for: routine payment of outstanding company liabilities or for those who would prefer a cash distribution over the in specie process.

• £4,495 MVL – CT/VAT refunds included
  Everything in £3,995, plus we claim and receive Corporation Tax and VAT refunds due to the company.
  Best for: CT/VAT refunds to recover.

• Bespoke MVL – Additional services as required
  Tailored support. Includes everything in £4,495, plus Section 455 refunds, HMRC enquiries/investigations, disputed claims, active pension schemes, title transfers for property/shares/investments in specie, asset realisations, and Section 110 reorganisations.
  Best for: property or shares to distribute; physical asset realisations; HMRC enquiries; disputed claims; active pensions, or a Section 110 split.

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.

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Criteria	£995	£3,995	£4,495	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

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.	£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 £3,995 + VAT. In the case of more complex MVLs, we offer a bespoke package to meet the individual needs of the company.

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