MVL

A Members Voluntary Arrangement (MVL) is a liquidation of a solvent company.

A Members Voluntary Arrangement (MVL) is a liquidation of a solvent company, which means that the company has sufficient assets to pay all liabilities, plus statutory interest within a period of fewer than 12 months.

An MVL is most commonly used when a company is no longer required either because of the retirement of the directors, the closure of the business, a change in circumstances or the reorganisation of a group of companies.

During the MVL the assets of the company will be realised and once creditors have been paid in full along with the liquidation fees the remaining balance of monies will be distributed to the shareholders. Companies with more than £25,000 of cash to be distributed may qualify for Business Asset Disposal Relief (formerly Entrepreneurs’ Relief) which is a more tax-efficient way of releasing funds but is dependent on several specific criteria being met.

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