If you’re ready to step away from your company, whether that’s for retirement, restructuring, or just the right time to exit, a Members’ Voluntary Liquidation (MVL) might be the most straightforward, tax-efficient way to do it.

An MVL is a formal process for closing a solvent limited company — one that can pay all its debts in full — and releasing the remaining funds to shareholders. If your company holds more than £25,000 in profits, property, or other assets, an MVL is usually more tax-efficient than a strike-off, especially if you qualify for Business Asset Disposal Relief (formerly Entrepreneurs’ Relief).

I’m Nick — a Business Recovery and Insolvency consultant with over 30 years’ experience. I’ve helped hundreds of directors close solvent companies cleanly and with confidence. Whether you’re winding things up after years of trading or simplifying your structure, I’ll guide you through the MVL process in plain English, with no pressure and no jargon.

How does an MVL work?

I’ll guide you through the process:

• We start with a conversation
  We’ll talk about your company’s position and what you’re hoping to achieve — whether that’s retirement, restructuring, or simply releasing funds. If an MVL is the right route, I’ll explain exactly how it works. And if there’s a better alternative, I’ll let you know.
• You confirm the company can pay its debts (declaration of solvency)
  This just means showing that the company is solvent, that it can pay everything it owes, including any tax. It’s a legal step, but I’ll guide you through it and make sure all the numbers are right, so you can move forward with confidence.
• A licensed Insolvency Practitioner is appointed
  I’ll help you appoint a trusted Insolvency Practitioner (IP), who will handle the legal side of things — from notifying HMRC and creditors to preparing the statutory paperwork. You’ll stay informed, but they take care of the formalities.
• Funds are distributed to shareholders
  Once the accounts are finalised and assets are realised, any remaining funds can be paid out — usually as capital distributions, which are often more tax-efficient than taking money as income. I’ll walk you through what to expect and the likely timeline.
• The company is formally closed
  When all obligations are settled, final accounts submitted, and HMRC clearance received, the company is dissolved and removed from the register. It’s a clean, final closure — and I’ll stay on hand until everything’s complete.

Why choose an MVL?

Here’s how an MVL could benefit you:

• It’s more tax-efficient than a strike-off
  If your company has over £25,000 in retained profits, property, or other assets, an MVL can often save you money compared to a strike-off. You’ll usually be able to extract funds as capital — and may qualify for Business Asset Disposal Relief, which can reduce Capital Gains Tax to just 10%.
• You’ll be supported throughout
  A licensed Insolvency Practitioner handles the formalities — but I stay involved from start to finish, guiding you through the process, answering questions, and making sure nothing is missed.
• You can plan the timing around what suits you
  Whether you’re retiring now or planning ahead, I’ll help you choose the right time to enter MVL, including how it lines up with your financial year, dividend position, and any upcoming liabilities.
• It gives you a proper, professional closure
  An MVL brings the company to a formal, final close. No loose ends.

Questions directors often ask me about MVL.

Do I qualify for Business Asset Disposal Relief?
If you’ve been a director and shareholder for at least two years, you may be able to pay just 10% Capital Gains Tax under Business Asset Disposal Relief. It’s something worth discussing with your accountant, and I’ll help you understand when it might apply so you can make sure you’re getting the right advice.

Can I do this myself without an Insolvency Practitioner?
Not if you want the benefits of an MVL. It must be handled by a licensed Insolvency Practitioner — but I’ll help you appoint someone trusted, and I stay involved to guide you through the whole process.

What does an MVL cost?
Depending on the company. I’ll explain all costs clearly before anything begins — and we’ll only move forward if the savings and benefits make it worthwhile.

How long does an MVL take?
The full process usually takes a few months, but in many cases, most of the funds can be distributed shortly after the liquidation begins. The timeline depends on things like your accounts, HMRC clearance, and the way your company is structured — I’ll walk you through what’s realistic and help keep things moving smoothly.

Can I start another company afterwards?
Yes — going through an MVL doesn’t stop you from setting up or running a new business. But if you’re planning to start a similar trade, especially after claiming Business Asset Disposal Relief, there are tax rules you’ll want to be aware of. I’ll flag anything relevant so you can speak to your accountant and make sure it’s structured properly.

What’s the first step?

If you’re considering retirement, restructuring, or simply want to close things down in the most efficient way, an MVL can offer a clear, tax-efficient path forward.

Every company is different, and so is every director’s situation. I’ll take the time to understand yours, explain how the process works, and help you decide if it’s the right route.

There’s no pressure — just a straightforward conversation so you can move forward with clarity.