How much does an MVL cost?

What is an MVL?

An MVL offers a cost-effective way to close your solvent limited company, alongside substantial tax benefits, but there are some costs involved which you will need to be aware of.

In order to start an MVL you will need to nominate an Insolvency Practitioner (IP) to become the liquidator. An IP is a licensed liquidation expert and, while all IPs are regulated to meet high legal and ethical standards, each will provide a different level of service which you will need to consider when deciding who to appoint for your company’s MVL.

With an MVL you can benefit from Business Asset Disposal Relief. This tax benefit sees MVL users paying only 10% tax on your company assets. This is a generous tax reduction and makes an MVL a lucrative way to close down your solvent company.

If you currently own an insolvent company and are looking for guidance and advice and how to liquidate, visit our Creditors’ Voluntary Liquidation (CVL) page.

Are you ready to get started with your MVL?

Most MVL’s can be completed in 3-6 months, don’t delay. The Liquidation Centre is here to keep liquidations simple. Contact us now.

What is included in the cost of an MVL?

In your initial exchange with your chosen IP, you can expect them to confirm their initial fee and outline the cost of various expenses which need to be covered. Unfortunately, third-party expenses which are detailed below, are an unavoidable part of the MVL process which are incurred by the IP when placing your company into liquidation and when acting as liquidator.

At the Liquidation Centre, our way is to ensure the routine expenses are charged at the same time as the initial fee as this enables the MVL process to move quickly and allows the liquidator to apply for VAT refunds as soon as possible.

Expenses

Statuary bond

This bond is insurance to protect your money whilst in the IP’s possession. This bond is a legal requirement that the IP must take out when they begin the MVL and is worked out depending on your company’s asset value.

Statuary advertising

Your IP is required to publish notices of your liquidation intent and completion in the Gazette. As a matter of public interest, these notices are designed to inform your creditors of your intention to liquidate your company and invite them to make any necessary claims for outstanding debts. This fee is approximately £320.00.

Sundry expenses

Often, IPs will itemise other expenses, such as for searches, postage, photocopying and stationery required to carry out the MVL.  These are usually small amounts, often less than £20.