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Written by:

John A Waller


Updated: September 21st, 2021.

Fixed Price MVL – Fixed Price Liquidation

Liquidate a company you no longer require

A members’ voluntary liquidation allows you to close formerly, a solvent company (can pay its debts as and when due) and additionally:

  • Plan to retire;
  • No succession in place of your family business;
  • You no longer want to operate the business anymore.

So, to proceed, you must:

  • Sign a ‘Declaration of solvency’ if your company was incorporated in England and Wales.
  • If a Scottish incorporated company: ask the Accountant in Bankruptcy for form 4.25 (Scot).

Fixed Price Liquidation

Considering a fixed price MVL? If so, when it comes to voluntary liquidation, we understand that our clients want to know how much it will cost them to put their company into liquidation. Choosing the correct Insolvency Practititioner to perform an MVL is however important.

Liquidation service

HBG Advisory provides SWIFT liquidation service, allowing payout with no hidden costs.

Gaining the confidence to move forward with a FIXED FEE therefore puts aside cost issues, allowing a stress free liquidation process.

The cost of placing a company in liquidation can vary depending on your circumstances, but we have attempted to price a cost guide within set criteria. You can observe our packages below for members voluntary liquidation.

Commencing a Members Voluntary Liquidation (MVL)

Commencing a Members Voluntary Liquidation (MVL) enables company shareholders to appoint a Liquidator to close a limited solvent company while realising assets of the company. Once the liquidator has fully realised all company assets while leaving no liabilities, the liquidator can then perform a capital distribution to shareholders of the company in specie or from funds held in the company.

An MVL differs from a Creditors Voluntary Liquidation, as no creditors meeting is held. However, directors must hold a members meeting. A special resolution must be proposed in the meeting, requiring that three quarters of the members vote, vote in person, or by proxy, in favour of placing the company in an MVL.

Under certain circumstances, valid resolutions for private companies can be passed for private companies without a meeting if the resolution is signed by or on behalf of all members entitled to attend and vote at a general meeting.

A limited company that is solvent differs from an insolvent one. A limited solvent company has cash reserves and other assets that enable repayment of its creditors—in total, leaving a balance for distribution to company shareholders.

To commence a member’s voluntary liquidations, the directors must start the process. However, the directors require 75% of shareholders to approve such action at a duly convened meeting.

Fixed Price MVL – Provide shareholders with a guarantee of cost

Fixed Price Liquidation 1 – MVL £995 plus disbursements

  • Liquidators fees £995;
  • Non Advice Service;
  • Tax-Friendly – Entrepreneurs Relief;
  • Quick access to 100% of funds day one of the members voluntary liquidation;
  • Distribution in species;
  • Best MVL if the company has therefore stopped trading, no assets or liabilities, only a cash balance.

Fixed Price Liquidation 2 – MVL £1,895 plus disbursements

  • Liquidators fees £1,895;
  • Advice driven service;
  • Tax-Friendly – Entrepreneurs relief;
  • Quick access to 75% of funds day one of the members voluntary liquidation;
  • Best MVL if S455 interest is due;
  • Best MVL if Corporation Tax is not finalised, assets on the balance sheet and employees;
  • Suitable for contractors, consultants or larger companies.

Fixed Price Liquidation 3 – MVL £4,850 plus disbursements

  • Liquidators fees £4,895;
  • Bespoke and advice-driven service;
  • Discussions with the company’s professional advisors;
  • Restructuring and realisation of going from a live business to members voluntary liquidation;
  • Taking a commercial approach to asset realisation;
  • Dealing with creditors;
  • Contingent liabilities.

Fixed Price MVL – Disbursements

We are required to:

  • 4 separate notices in the Gazette (costing £60 + VAT each),
  • a bond, costing approx few hundred pounds.

When will Funds be distributed among Shareholders?

Depends on which of the above liquidations is needed. With MVL1 and many MVL2, HBG Advisory will distribute funds within 48 to 72 hours.  Funds are distributed on the day one of liquidation. We provide a Deed of Assignment/Distribution, along with the Liquidator’s statement of Distribution, Receipts and Payments account.

However, not all MVLs are easy to perform and require perhaps the MVL3 service. However, we can payout 75% on the day of the liquidation, and the balance within three to twelve months after the liquidation date. Final payment is subject to clearance by HMRC, normally taking two months, but these unusual pandemic times may increase the time.

To find out more or get advice, please call John Waller on 0800 612 5448.

Please view the team at HBG Advisory.

* All prices may be subject to VAT & taxes where applicable.

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