5 top reasons why you need to use an MVL Reply


Pot of gold coins isolated on white

Members Voluntary Liquidations have been increasing in popularity

According to the official statistics from The Insolvency Service, over the last few (financial) years the number of MVLs has been:

 

 

 

2008/2009

3,727

2009/2010

3,266

2010/2011

3,270

2011/2012

3,644

 

 

 

Since the ESC C16 change came into effect on 1st March 2012, the number increased to:

 

 

 

2012/2013

4,695

Here are my top 5 reasons why an MVL might be a good choice:

  1. The change in 2012 capped capital distributions on striking off at £25,000 but this cap does not apply to liquidations
  2. You want to retire and close your business and extract the net worth
  3. You created a Special Purpose Vehicle (SPV) for a specific project and the company is no longer needed
  4. Companies that are stuck off can be re-instated but that’s not the case with liquidated companies
  5. Entrepreneurs Tax Relief may be applicable meaning the capital distribution is taxed at 10%

steve@bicknells.net

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