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MVLs remain popular

23 August 2018

Peter Hall has been appointed on a number of recent Members' Voluntary Liquidations ("MVLs"). MVLs are a solvent liquidation process and are typically used when companies have ceased trading and have reserves available for distribution to their shareholders.

Recent appointments have included development companies (once the development has been completed), a marketing company (once the business had ceased trading) and a pub operator (once the freehold had been sold).

By placing the company into MVL, the shareholders have been able to take advantage of Entrepreneurs Tax Relief on the distributions made to them from the liquidation.

MVLs have also proved a useful way of dealing with outstanding directors' loan accounts. By realising the loan accounts in the liquidation, the liquidator has been able to apply for refunds of s455 tax the companies had previously paid on the loans.

If you would like any further information on solvent liquidations, please contact a member of the team.