MVL vs Strike Off: Options for Solvent Companies
Understanding your options for closing down a solvent company Members’ Voluntary Liquidation, or MVL, is a commonly chosen route for company directors seeking to wind up a solvent business and release its tied-up cash. Engaging in an MVL necessitates the hiring of a licensed insolvency practitioner (IP), thereby incurring professional fees. On the other hand, […]
Solvent Liquidation: Advice for Shareholders and Directors
What you need to know about liquidating a solvent limited company If you’re looking to close down a company that’s run out of money, you’ve got two main choices: The best option for you will depend on how much cash and assets the company has. For details on closing an insolvent company, check out our […]
Members’ Voluntary Liquidation: Distribution in specie
What is meant by a distribution in specie in an MVL? During an MVL, an asset is distributed ‘in specie’ when it’s given to shareholders in its physical form rather than its cash value. For instance, property, vehicles, or stock are directly transferred to shareholders instead of being sold first, with the proceeds then distributed. […]
Defending a Winding-Up Petition
Can you get a Winding Up Petition withdrawn, stopped or dismissed? You can protect your business from a Winding Up Petition, but you need to act fast. Ignoring the petition leads to it being advertised in seven days. Your bank typically freezes your company’s account then, making trading tough. The petition goes to court next, […]
Can I buy back company assets during or after liquidation?
Can you purchase the assets of a company after liquidation? Liquidation is when a company sells its assets and uses the money to pay back creditors, either in full or partially. These assets are usually sold through auctions, once their value has been determined by the liquidator. The liquidator’s main job is to ensure that […]
Members’ Voluntary Liquidation: Contingent Liabilities
What are contingent liabilities in a Members’ Voluntary Liquidation (MVL)? A contingent liability refers to a potential debt that a company may face depending on the outcome of a pending court proceeding. In simpler terms, the liability’s existence depends on a future event. In an MVL, which relies on the company’s solvency, these potential future […]
What is a Members’ Voluntary Liquidation (MVL)?
What is the process of a Members’ Voluntary Liquidation (MVL)? A Members’ Voluntary Liquidation (MVL) is a formal procedure for winding up a solvent company in a cost-effective manner. MVLs are commonly used as a tax-efficient strategy for exiting a profitable company, particularly when the company has fulfilled its purpose or when shareholders and/or directors […]
What is Business Asset Disposal Relief in an MVL?
Understanding Business Asset Disposal Relief (BADR) in a solvent liquidation (MVL) Business Asset Disposal Relief, formerly known as Entrepreneurs’ Relief, is a tax relief scheme designed to reduce the Capital Gains Tax rate payable upon the sale or liquidation of a solvent company. Through this relief, Capital Gains Tax can be decreased to 10% for […]
Can a creditor put my company into liquidation?
Can my business be forced into liquidation by a creditor for unpaid debts? To be clear, yes. If you’re having difficulty paying creditors like suppliers, the bank, or HMRC, it’s crucial to understand the situation fully. A creditor (someone you owe money to) can initiate compulsory liquidation to shut down your business. However, you do […]
Does company liquidation affect my personal credit rating?
Could your personal credit rating be impacted by company liquidation? Generally, when your company goes into liquidation, your personal credit rating remains unaffected. This is because a limited company is seen as a distinct legal entity from its owners, which means that personal and business finances are separate. Beyond that, in certain situations, it’s not […]