Members’ Voluntary Liquidation or MVL
This type of liquidation is voluntarily undertaken by a company that has come under pressure from creditors to square outstanding debts, even though it is still solvent with enough assets and cash flow to remain a viable enterprise.
The MVL provides a number of tax advantages for directors and shareholders who wish to wind up their company and extract assets. This is typically done via a lump sum which is then distributed amongst the shareholders.
The MVL is often the most tax-effective method for liquidating a company and extracting its assets, even if the company is under no extraordinary pressure from