How much does an MVL cost?

What is an MVL?

An MVL offers a cost-effective way to close your solvent limited company and offers substantial tax benefits, but there are some costs involved, which you will need to be aware of.

To start an MVL, you will need to nominate an Insolvency Practitioner (IP) to become the liquidator. An IP is a licensed liquidation expert, and while all IPs are regulated to meet high legal and ethical standards, each will provide a different level of service. You should always research the liquidator and their experience before appointing them for your company’s MVL.

With an MVL, you can benefit from Business Asset Disposal Relief. This tax benefit sees MVL users paying only 14% tax on their company assets. This generous tax reduction makes an MVL a lucrative way to close down your solvent company.

If you own an insolvent company and are looking for guidance and advice on how to liquidate, visit our Creditors’ Voluntary Liquidation (CVL) page.

Are you ready to get started with your MVL?

Most MVLs can be completed in 3-6 months, so if you’re ready to close your company, speak to us today to get started. The Liquidation Centre is here to keep liquidations simple, and you can easily get a quote for the MVL cost online.

What is included in the cost of an MVL?

In your initial exchange with your chosen IP, you can expect them to confirm their initial fee and outline the cost of various expenses that need to be covered. Unfortunately, third-party expenses, which are detailed below, are an unavoidable part of the MVL cost. The IP incurs them when placing your company into liquidation when acting as the liquidator.

At the Liquidation Centre, we ensure the routine expenses are charged at the same time as the initial fee. This enables the MVL process to move quickly and allows the liquidator to apply for VAT refunds as soon as possible.

Expenses

Statuary bond

This bond is insurance to protect your money while it is in the IP’s possession. It is a legal requirement that the IP take out when they begin the MVL and is calculated based on your company’s asset value.

Statuary advertising

Your IP is required to publish notices of your liquidation intent and completion in the Gazette. As a matter of public interest, these notices are designed to inform your creditors of your intention to liquidate your company and invite them to make any necessary claims for outstanding debts. This fee is approximately £320.00.

Sundry expenses

IPs often estimate other expenses, such as searches, postage, photocopying, and stationery required for the MVL. These are usually small amounts, often less than £20.