Construction

If you wish to close your construction or building business, a Members’ Voluntary Liquidation (MVL) is a formal procedure for liquidating a solvent limited company tax-efficiently. It’s a seamless process handled by a licensed insolvency procedure that involves distributing company profits and bringing company affairs to a close.

You may consider closing your construction business if it is no longer required. This may be due to various reasons, such as retirement, challenging market conditions, rising costs, pursuing another business venture, cashing out on your investment or as the company no longer serves a purpose. A Members’ Voluntary Liquidation is a company closure route that enables shareholders to extract funds while minimising tax liabilities.

To close a construction business through a Members’ Voluntary Liquidation, the company must be solvent and therefore, able to settle company liabilities within 12 months from the date of liquidation, including payments to creditors, suppliers, contractors and sub-contractors.

An MVL is a common route for closing a construction business as it allows shareholders to release cash from the company and realise assets, such as industrial machinery, equipment, stock and inventory, often aplenty due to the nature of construction businesses.

The MVL process facilitates the quick release of funds and can be a stress-free, fully managed journey when handled by a reputable licensed insolvency practitioner. To liquidate a solvent construction business through a Members’ Voluntary Liquidation, you must first appoint a licensed insolvency practitioner.

Here’s a typical timeline for a Members’ Voluntary Liquidation:

Appoint a licensed insolvency practitioner – Formally appoint a licensed insolvency practitioner to act as the liquidator and handle capital distributions.

Sign a declaration of solvency – Company directors must sign a declaration of solvency, confirming that the business is solvent. This will be backed by a comprehensive assessment of company finances.

Company liquidation begins – The relevant parties, such as HMRC and Companies House, are notified and the liquidation will be advertised in the Gazette.

Profits are distributed – If all company liabilities are settled, capital distributions will be made to company shareholders and the company will be closed.

For confidential advice on whether a Members’ Voluntary Liquidation is a suitable exit route for your construction company, get in touch with a Solvent Liquidations expert today. We offer a free, no-obligation consultation and our advice is delivered by licensed insolvency practitioners, so rest assured – you’re in safe hands.