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5 top reasons why you need to use an MVL

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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:

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

steve@bicknells.net


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