An MVL is a solvent liquidation. Creditors are paid in full although only an insolvency practitioner can act in an MVL.
When a company has come to the end of its useful life an MVL up is often required because:
If the company is not wound up then the directors continue to have to comply with their duties as directors, including accounts, Companies House etc.
Business Asset Disposal (Entrepreneurs) Relief
There can be tax savings for shareholders from closing a company using an MVL, if this Relief applies.
Your personal tax advisor should be able to advise you if an MVL would be tax efficient. If so we will work alongside your tax advisor and act in the required liquidation process.
Section 110 Insolvency Act Scheme
One or more businesses of a company in MVL may be transferred to a new company, or companies, in return for shares in the new companies. New shares are distributed to the original company shareholders.