Members Voluntary Liquidation
When a company has run it's course, or the directors decide to retire, a Members Voluntary Liquidation (MVL) is often the best course of action to effectively wind up the company.
If a Company's share capital is greater than 150, Directors are obliged to appoint a liquidator put the company into voluntary liquidation. Appointing a liquidator to undertke a Members Voluntary Liquidation is also the most tax efficient way of releasing any monies in the company.
Funds released in an Members Voluntary Liquidation are taxed at Capital Gains Tax rates as apposed to a much higher rate that would be applied if the monies were taken as salaries. Similarly whee the liquidator undertakes a transfer of free hold property to shareholders, Members Voluntary Liquidation (MVL) means that no stamp duty is payable.
