Members Voluntary Liquidations:
In a Members Voluntary Liquidation, all creditors will be paid in full. When a company has completed its time and wishes to end its trade, a tax efficient way of releasing the surplus that may have accumulated is to place the company into a Members Voluntary Liquidation. The tax advantage is that the capital gain received on shares is subject to capital gains tax at 20% whereas if the surplus was taken out as salary, it would be subject to higher rates.

We provide initial consultation to outline to procedure of a Members Voluntary Liquidation and then prepare all necessary documentation.

The Directors must prepare a Statement of Affairs and swear a statutory Declaration of Solvency prior to the voluntary winding up. The Declaration summarises the company’s assets and liabilities and the directors state the company will be able to pay all debts in full within 12 months of commencement of the liquidation.