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In certain circumstances you may be looking for an orderly wind down of the business. We can help plan and implement the process ensuring you are able to get the money back that you deserve in the most tax-efficient way. By using our services, the funds to be distributed can be subject to Capital Gains Tax, rather than Income Tax; allowing you to qualify for Business Asset Disposal Relief (previously Entrepreneurs Relief) and thereby limiting your tax rate to 10%.
We pride our selves on our quick service and turnaround of funds. We can help you plan the process so you have access to all the money within the week following our appointment. This year we distributed assets and funds to our clients on average of four days following appointment.
The Company must have sufficient assets to be able to settle outstanding liabilities
You have agreed to cease trade or demerge and the legal entity is no longer required
Tax benefits may only apply if you have assets more than the statutory threshold
A Members Voluntary Liquidation (MVL) is a voluntary procedure to wind up the affairs of a SOLVENT company. It is used to close or wind up a company because the director(s) may wish to retire, re-organise or restructure the business or the company is simply not required any more.
MVL provides certainty and can potentially provide a significant tax advantage if the company has adequate funds to distribute to shareholders prior to dissolution.
How the process works?
At Cooper Young, we will help assess whether an MVL may be the best way forward for your business.
We will prepare the necessary paperwork. A majority of the directors will need to swear a Statement of Truth and shareholders are required to consider the resolutions put forward for the Company to enter an MVL.
Following our appointment, we will initiate the process of realising and distributing the assets. Depending on the nature of the assets and liabilities, you should have your money back within the week following the appointment of a Liquidator.
We will carry on with the legal process of completing the MVL. Six to nine months following our appointment we will issue a final report and the case will be closed.
