Fee Guides
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This procedure provides a tax efficient way for shareholders to release value in a solvent company when it ceases to trade. The costs of the liquidation will be less than the tax savings obtained by distributing as capital rather than by dividend so that the shareholders maximise the value to them.
It can also be used to provide an independent distribution in circumstances where the shareholders have fallen out.
MVL's have become more common recently as shareholders can no longer rely on HM Revenue & Customs to sanction capital distributions without liquidation.
For more details, please contact us on 01253 349331.
Quick guide to index
Bankruptcy: Write off your debts but subject to various restrictions. Your home may be at risk together with any other assets you may have.
IVA Individual Voluntary Arrangement: An agreement with those to whom you owe money to avoid bankruptcy. Fewer restrictions than bankruptcy.
CVL: Applicable to companies rather than individuals, but also to partnerships. Corporate bankruptcy used where the company is insolvent and cannot continue to trade.
CVA: Company Voluntary Arrangement.
Administration: Court driven procedure to allow limited companies to continue trading whilst a rescue package is agreed. Commonly used by football and rugby clubs.
Admin Receivership: A secured creditor appoints an Insolvency Practitioner to run the company and recover their money.
MVL: A solvent liquidation for companies where all liabilities are paid and generally shareholders recover their investment. |
