If you are looking to close a solvent company with zero debts a members voluntary liquidation (MVL) is potentially the best option in December 2025.
An MVL is a formal process to bring a company to a close that is not insolvent. Directors are required to make a sworn declaration that the company is solvent and can pay all its taxes.
In this Members Voluntary Liquidation guide, you will learn everything involved in closing a limited company in the UK that is solvent.
Is an MVL The Right Solution?
Table of Content
- 1 Best MVL Companies 2025
- 2 What is An MVL?
- 3 Differences Between MVL and Company Dissolution
- 4 MVL Cost
- 5 What Are The Benefits Of An MVL?
- 6 Tax Efficiency of an MVL
- 7 How Quickly Do Shareholders Get Paid?
- 8 How can I Prepare My Company For An MVL?
- 9 MVL Entrepreneurs Relief
- 10 Other Debt Solutions
- 11 Popular Questions
- 12 All UK Insolvency Practitioners
Best MVL Companies 2025
There are many top-rated MVL companies in the UK to choose from.
From our research, here is a list of the best Members Voluntary Liquidation companies in December 2025:
- Business Insolvency Company
- Debtline
- GW Financial Solutions UK Ltd
- Business Debt Help
- Trust Debt Advice
- NTF Financial Solutions Insolvency
- Payplan
- National Debt Advice
- Stepchange
What is An MVL?
A Members’ Voluntary Liquidation (MVL) is a method for cost-effectively winding down a solvent company. MVL’s are frequently used as an exit planning tool when a profitable firm is no longer useful, where shareholders want to get a return on their investment, or when the company’s directors are nearing retirement or are looking to leave the company for any reason.
Differences Between MVL and Company Dissolution
Members’ voluntary liquidation and dissolution are two methods for closing down a solvent business that is no longer needed. However, there are some significant differences between the two processes that impact the way the company is closed as well as your ability to claim director redundancy.
The main differences between an MVL and company dissolution is the amount of money left in the company you are looking to close. If you have no money or assets in the company you are closing then dissolution with a DS01 form to Companies House is the best way to go. If you have retained profits within the business (above £25,000) then an MVL carried out by a licensed insolvency practitioner will be the best option to save money with Business Asset Disposal Relief (also known as entrepreneurs tax).
Business Asset Disposal Relief means you’ll pay tax at 10% on all gains on qualifying assets.
Make sure to speak to a professional insolvency practitioner today if you are unsure which avenue best suits you and your specific situation.
Help Close your Company
MVL Cost
An MVL typically costs between £1,600 to £2,000 plus VAT and expenses.
When a company’s only asset is cash in the bank, and all liabilities have been paid, this standard fee applies. Fees will be higher if the case is more complicated and actual assets must be realised, existing liabilities must be paid, or assets must be distributed in cash.
What are the Liquidator Costs To Process an MVL
The cost of processing an MVL is typically deducted from the liquidation assets of the company (cash in the bank). The remaining funds are distributed in accordance with the company’s shares. As a result, you rarely need to pay any money in advance for an MVL.
What Are The Benefits Of An MVL?
The main benefits of an MVL are:
- Shareholder distributions are taxed at a low rate.
- Expenses for accounting and auditing are reduced.
- It saves time for management when it comes to producing statutory returns and compliance data.
Directors’ risk reduced. - Extract the business’s value in the form of cash.
- Returns assets to owners in a tax-efficient manner.
- Quick access to funds held by shareholders.
- Enhances investor perception by improving transparency by simplifying complex and unmanageable arrangements.
Tax Efficiency of an MVL
All retained profits are recognised as capital rather than income when a company is closed through an MVL. The funds distributed to shareholders are subject to Capital Gains Tax (CGT) rather than income tax, which is a far better choice than paying dividends in the vast majority of circumstances.
MVLs are extremely popular when large quantities of retained profits are involved due to this tax benefit.
From start to finish, a typical MVL will take roughly eight months. However, most of the monies due to shareholders are generally received from the corporation within three months.
The insolvency practitioner will keep a small amount until the company is legally closed; the liquidator will keep the agreed fee for placing the company into an MVL plus expenses, and any residual cash will be dispersed among the shareholders at this time after approval from HMRC.
How can I Prepare My Company For An MVL?
If you’re looking to place your business into an MVL, there are several things you can do to prepare your company for the process. Getting your firm into as simple a state as possible before beginning the MVL makes the process easier further down the line and assures that your company qualifies for this method.
Ensuring the following methods are taken care of can reduce the time and cost of your MVL:
- Check your liabilities are paid.
- Ensure your debtor book is chased and collected and all HMRC duties are met.
- Arrange to sell remaining stocks and assets
Following important internal conversations among the company’s directors and shareholders, you should approach a licenced insolvency practitioner (IP) to discuss MVL’s viability.
MVL Entrepreneurs Relief
If you have run a successful business and built up a lot of money that you wish to take out of the company, you will want to do so in the most tax-efficient way.
A members’ voluntary liquidation (MVL) could help you benefit from a tax rate of just 10 per cent, which is far less than the rate you would be charged if those funds were to be taken as income in the form of wages or dividends.
The MVL Entrepreneurs Relief of paying just 10% in taxes is considered the best solution for many looking to sell their company or take out a significant amount from their business banks.
Business Asset Disposal Relief (BADR), formerly known as Entrepreneurs’ Relief prior to April 2020, is a tax relief scheme which allows for a reduced rate of Capital Gains Tax (CGT) to be paid upon the sale or solvent liquidation of a limited company.
Entrepreneurs’ Relief is available on up to £10million in lifetime gains, which could result in a tax saving of £1.8million.
Other Debt Solutions
When analysing your credit report and current debtors it is advised to understand all the debt solutions available to you.
Here are all the debt solutions available to you depending on where you are based in the UK:
- Best Company Administration Companies
- Best Company Dissolution Companies
- Best CVA Companies
- Best CVL Companies

- Best Insolvency Practitioners
- Best MVL Companies
- Best Partnership Administration Companies
- Best Partnership Liquidation Companies
- Best Partnership Voluntary Arrangement Companies
- Best Pre Pack Administration Companies
Popular Questions
What happens in a MVL?
How long does a MVL take?
Can you do your own MVL?
What is Moneyboxing in an MVL?
What is Entrepreneurs Relief?
What is the Targeted Anti-Avoidance Rule?
Is an MVL only Available to Solvent Companies?
All UK Insolvency Practitioners
Here is a full list of Insolvency Practitioners in the UK:
- 1st Business Rescue Review
- Abbotts Insolvency Review
- Anchorage Chambers Insolvency Review
- Anderson Brookes Insolvency Review
- Angel Advance Insolvency Review
- Begbies Traynor Insolvency Review
- Bennett Jones Insolvency Review
- Best Bankruptcy Companies
- Best Company Administration Companies
- Best Company Dissolution Companies
- Best CVA Companies
- Best CVL Companies
- Best DAS Companies
- Best Full and Final Companies
- Best Insolvency Practitioners
- Best IVA Companies in Manchester
- Best IVA Companies UK
- Best MVL Companies
- Best Partnership Administration Companies
- Best Partnership Liquidation Companies
- Best Partnership Voluntary Arrangement Companies
- Best Pre Pack Administration Companies
- Best Sequestration Companies
- Best Trust Deed Companies
- Carrington George Associates Insolvency Review
- Chamberlain & Co Review
- Clarke Bell Licensed Insolvency Practitioner Review
- Creditfix Insolvency Review
- Debt Champion Insolvency Review
- Debt Consolidation Companies
- Debt Focus Insolvency Review
- Debt Relief Order Companies
- Debtfree4me Insolvency Review
- DMP Companies
- Financial Support Systems Insolvency Review
- Focus Insolvency Group Review
- Forbes Burton Licensed Insolvency Practitioners Review
- Forest King Insolvency Review
- Freeman Jones Insolvency Review
- Greenfield Recovery Review
- Gregory Pennington
- Griffin & King Licensed Insolvency Practitioners Review
- Hanover Insolvency Review
- Insolvency Administrator Rights
- Jarvis Insolvency Review
- Johnson Geddes Insolvency Review
- Keystone Recovery Licensed Insolvency Practitioners Review
- Leonard Curtis Insolvency Review
- McCambridge Duffy Insolvency Review
- MoneyPlus Insolvency Review
- NTF Financial Solutions Insolvency Review
- PayPlan Insolvency Review
- Purnells Insolvency Practitioners Review
- Quality Insolvency Services Review
- Re10 Finance Insolvency Review
- Real Business Rescue Review
- Spencer Rowe Insolvency Review
- The Debt Advisor Insolvency Review
- The Insolvency Practice Review
- Turpin Barker Armstrong Insolvency Practitioners Review
- Umbrella Accountants Insolvency Review
- Unity Corporation Insolvency Review
- Vanguard Insolvency Review
- Wilson Field Licensed Insolvency Practitioner Review
- X Debt Insolvency Review
The insolvency practitioner list above gives you plenty of options to choose the best IVA firm in December 2025.