Company in Dissolution
If you no longer require your solvent Limited Company or LLP or you want to exit your business as cleanly and tax efficiently as possible then our options will help you achieve this.
What type of company in dissolution?
Members Voluntary Liquidation (MvL)
A members voluntary liquidation is for solvent Limited Companies or LLP’s. It is one of the most tax-efficient methods of closing down your company and could result in a capital gain tax bill as low as 10%.
Informal Voluntary Liquidation (with Entrepreneurs Relief)
An IVL (Informal Voluntary Liquidation) with Entrepreneur’s Relief is for solvent Limited companies or LLP’s. It is a tax-efficient way of closing down your company if it qualifies for Entrepreneurs’ Relief
Informal Voluntary Liquidation
An IVL (Informal Voluntary Liquidation) option is ideal for your Limited Company or LLP if it does not qualify for Entrepreneurs Relief. It is a straight forward and clean way of closing down your company.
more about closing down your company
Your Limited Company or Limited Liability Partnership (LLP) is considered to be solvent when the business assets are greater than the business liabilities. This can be established from the balance sheet, also known as the statement of financial position.
Only if your company is in a solvent position can it take advantage of the 3 options above. In a solvent liquidation, it is almost always a voluntary event, in so far as the directors are not compelled to liquidate their company. This would be the case in an insolvent situation.
When a solvent company is liquidated, once all creditors (organisations and people your business owes money to) are paid, any remaining assets (including liquid cash) is distributed to the shareholders. This distribution (when done correctly) can be very tax efficient and be subject to less than 10% in personal taxation on the shareholders. Schedule a call today if you want to discuss your company dissolution options.