Case Study: Solvent Liquidation / MVL

We act for many clients who are approaching retirement or have a change in life plan and this is where an MVL can be utilised.

Husband and wife ran a successful business for a number of years however they had no succession plan but wanted to retire.

The company has assets (made up of cash and tangible assets) in excess of £1 million.

If they had closed the company through dissolution and taken the funds as dividends this would make them a higher rate tax payer but by closing the company through an MVL with Beesley’s they extracted the funds available under Entrepreneurs Relief which was taxed at 10%.

(This information was accurate and in accordance with HMRC rules at the time of publishing)