Closing A Solvent Business

Solvent winding up processes frequently have

significant tax benefits for 

shareholders.

The end of life of a solvent company can occur for many reasons such as:

✔  The purpose of the incorporation has been met

✔   Retirement of directors 
✔  Change in Circumstances or direction of the directors & stakeholders
✔  End of contracts 
✔  The stakeholders have fallen out 
✔  Re-organisation of a group of companies after merger 
✔  Finalising the tax affairs for a single or group of companies 
✔  Part of a greater tax planning exercise 

At the end of a life of a company, it is important to maximise the final return to shareholders & consider the legal implications of the method of the exit. Members Voluntary Liquidations frequently provide the most effective solution to closing a solvent business & has benefits of which most stakeholders are not aware.

Call us now for a free initial consultation.

We seek to set a strategy with you & your advisers which moves towards the commencement of the MVL of your company. At a designated time point, a Declaration of Solvency stating the company’s closing position is prepared & the directors affirm the document. Within 14 days, the MVL process is incepted by the directors at a board meeting, at which resolutions are passed to give notice to members of a meeting to wind up the company. At the shareholders' meeting the company is wound up & the liquidators appointed. These three aspects usually take place on the same day. 

In all MVLs, we seek to immediately effect the strategy agreed & make an immediate & sizeable payment of assets to the shareholders upon appointment. Our experienced staff ensure an effective wind down & the remaining distributions are actioned promptly. In particular, we consider all recoverable or rebated taxes & assets throughout our instruction. 

We are highly experienced in dealing with all types of MVLs from straight forward cash or in specie based assets, to highly complex matters such as development of a commercial property owned by a Company in MVL, complex tax planning requirements, group companies reducing exercises involving interlinked tax matters & companies subject to contested deceased estates & long forgotten assets repatriated. 

Our costs start at £1,500 plus VAT & disbursements for a straightforward MVL where all assets are cash based. 

Please contact us for advice & to obtain a quote for us to act.