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 1^st 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