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