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Contractor Company Liquidation (MVL) Services

Closing your company - tax efficiently

Decided to stop using a limited company? Or retiring? Or returning to permanent work? Then you can close your company in a very tax efficient manner.

Closing your company using a Members Voluntary Liquidation (MVL) could be the most efficient option for you:

  • Extract the reserved funds of the business in cash.
  • Pay only 10% tax and also use CGT allowances.
  • Very quick - can be completed within weeks.

Criteria to use an MVL

  • Reserves over £35,000* - after paying all final liabilities
  • Company has traded over 12 months
  • Shareholders are directors or employees
  • Unlikely to trade again via a company within 2 years

* The minimum statutory limit for using an MVL mechanism is £25,000 - but, when taking into account processing fees, it's not cost effective unless you have at least £35,000 reserves.

Next steps:

It's important to seek current advice about using MVLs to ensure that it is the right option for you.