An MVL is a formal procedure used to close a company that is financially solvent. It offers a strategic, tax-efficient, and legally compliant way to wind down operations while maximising shareholder value.
Why Choose an MVL?
- MVLs may offer significant tax benefits,
- Funds distributed in an MVL are subject to Capital Gains Tax (“CGT”) rather than income tax, often resulting in a lower tax rate.
- Business Asset Disposal Relief (“BADR”) can be used to reduce CGT. This is currently applied at 14% however will increase to 18% from 6 April 2026.
- Assets such as property or investments can also be distributed to shareholders
- Clean Exit
- Ensures all liabilities are settled and the company is formally dissolved.
- No further obligations for statutory filings and accounts to be prepared.
- Shareholder Returns
- Assets are distributed in an orderly and efficient manner.
Is an MVL right for your clients??
An MVL provides a dignified and financially sound way to close your client’s business—unlocking value with clarity and control. It is particularly beneficial for clients who are:
- Retiring
- Restructuring
- Moving on to new ventures
Key Steps in an MVL
- Declaration of Solvency
- Directors confirm the company can pay all debts within 12 months.
- Shareholders pass resolutions to wind the Company up
- Appointment of a licensed Insolvency Practitioner as Liquidator to manage the process
- The liquidator oversees the distribution of remaining assets to shareholders and ensures all legal obligations are met.
How RPG can help make an MVL can work for your clients.
- Unparalleled Expertise
Our insolvency practitioners have knowledge of MVL procedures, built up over years of hands-on experience, we guide you step-by-step, ensuring every detail is handled with precision.
- Customised Solutions
No two businesses are alike. We tailor our MVL services to your client’s requirements and long-term objectives, no matter what the size of the company.
- Compliance & Regulation
We stay ahead of evolving legal requirements. Your client’s MVL will be executed in full accordance with current regulations.
- Financial Management
MVLs can offer significant tax advantages. Where required we can work with your client’s Personal Tax Adviser and Personal Financial Adviser to review their financial position to help maximise returns and unlock the full value of their remaining assets. We are happy to make introductions to specialists on a project basis who can help your clients if you do not currently have specialist advisers available.
- Transparent Process
We believe in clear, consistent communication. Your clients will be kept informed at every stage—progress updates, key milestones, and any developments—so that they remain confident throughout.
- Timely Execution
Efficiency matters. Our team works diligently to complete the MVL process within the designated timeframe, helping your client to move forward without delay.
How to progress
We are always happy to have a “no obligation” discussion with you and / or your clients to explore options for assisting them. We understand the trust you would be placing in us and can reassure you that we would strive to achieve the best possible outcome for your clients. You can email us at Business Recovery businessrecovery@rpg.co.uk or call our Manchester office on 0161 608 0000 – we are always happy to have a chat!
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