Members’ Voluntary Liquidations for retail businesses

A Members’ Voluntary Liquidation (MVL) is a highly tax efficient liquidation procedure for solvent companies, popular with retail businesses. If you want to close a retail business with substantial retained profits, a range of tax advantages available through an MVL can help maximise returns.

An MVL is a suitable exit tool for profit and asset-rich businesses, which makes it an ideal fit for retail businesses. Due to the nature of the retail trade, high stock content, equipment, property and intellectual property are common for retailers. To prepare your company for an MVL, you may consider realising assets to maximise the cash available in your business before distributing company profits.

Closing a solvent retail business

To qualify for an MVL, the company must be solvent, and therefore, able to settle company liabilities, including interest, over 12-months. The company must also have over £25,000 retained profits to achieve a cost-efficient exit.

An MVL is a popular exit tool for retail businesses due to the associated tax treatment. Distributions made through an MVL are treated as capital, rather than income, therefore, subject to capital gains tax, rather than income tax. You may also qualify for Business Asset Disposal Relief which further reduces your tax liability.

An MVL is handled by a licensed insolvency practitioner, so you’ll be supported throughout each stage of the journey by a member of the Solvent Liquidations team.

MVL timeline for retail businesses

A Members’ Voluntary Liquidation is a fast and efficient procedure to close a solvent business. Here’s a typical timeline for an MVL:

Appoint a licensed insolvency practitioner – Choose a licensed insolvency practitioner that’s experienced and reputable to liquidate your solvent retail company.

Declare solvency – Sign a declaration of solvency that attests to the solvency of your company. A thorough investigation will be held to support this.

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

Distributions made to shareholders – Once creditor claims are settled, if any, the company will be dissolved and removed from Companies House.

To understand the Members’ Voluntary Liquidation process and whether an MVL is right for your retail company, get in touch with a member of the Solvent Liquidations team.

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