Members’ Voluntary Liquidations for farming and agriculture businesses

If you want to close a solvent farming and agriculture company, a Members’ Voluntary Liquidation (MVL) is a formal liquidation procedure for solvent companies that’s highly tax efficient. An MVL is a suitable exit tool handled by a licensed insolvency practitioner that enables you to dispose of a solvent company quickly and in a stress-free manner.

You may consider closing your farming and agriculture company due to changing market conditions, labour shortages, climate change, rising energy costs, increasing overheads, or another business opportunity. Due to the high-asset nature of farming and agriculture companies, you may consider realising assets to maximise the cash available in the business, ready to extract. This may include land, property, industrial machinery, equipment and livestock.

An MVL enables you to extract and distribute retained company profits amongst shareholders and benefit from tax advantages.

Closing a solvent farming and agriculture business

To close a solvent farming and agriculture business through a Members’ Voluntary Liquidation (MVL), your company must be solvent, and therefore, able to settle company liabilities within 12 months. The company must also have over £25,000 in retained profits for the route to be cost-efficient.

A Members’ Voluntary Liquidation process is a tax-efficient route for closing a solvent company. Funds extracted from the company are treated as capital, rather than income, and therefore, subject to capital tax, rather than income tax. You may also qualify for Business Asset Disposal Relief, formerly Entrepreneurs’ Relief, which could further reduce your tax liability.

MVL timeline for farming and agriculture businesses

The MVL typical timeline for closing a farming and agriculture business includes: 

Appoint an insolvency practitioner – Choose a licensed insolvency practitioner to handle the Members’ Voluntary Liquidation procedure.

Sign declaration of solvency – As part of the MVL, you must sign a declaration of solvency to authenticate business solvency.

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

Distribute company profits – Company profits are distributed amongst shareholders in a tax-efficient manner. The company is dissolved, and records are removed from the Companies House register.

For more information on how to close a solvent farming and agriculture business through a Members’ Voluntary Liquidation, get in touch with a Solvent Liquidations specialist.

25,000+ Company Directors Supported – Partner Led Service

As the UK’s largest company liquidations provider, our MVL specialists have 35 years’ experience and a track record of supporting over 25,000 directors and counting. With unparalleled sector expertise and a highly experienced partner-led team, we are market leaders.

Solvent Liquidation made a complex process feel simple. Their expertise and support throughout my MVL ensured a stress-free and positive outcome.

Sarah Thompson

The team at Solvent Liquidation were incredibly professional and efficient. They handled my MVL with care, making the entire experience straightforward.

James Patel

I highly recommend Solvent Liquidation. Their clear guidance and knowledge made my MVL process smooth and successful. A fantastic service!

Oliver Williams