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Tax and Members’ Voluntary Liquidations

Approved Recovery’s Solvent Solutions is a simple, cost-effective Members’ Voluntary Liquidation service that supports tax-efficient shareholder distributions (including potential BADR relief) and can help reclaim VAT on eligible liquidation costs where applicable.

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Distributions to shareholders and Entrepreneurs’ Relief

An MVL is an attractive option to wind-up a company’s affairs because a Liquidator’s distribution to shareholders is classed as capital, not income. Subject to the shareholder’s personal tax position, there are potential significant tax savings in an MVL.

In most situations, capital gains tax is comparatively lower than income tax and further savings are available if shareholders qualify for Entrepreneurs’ relief.

Entrepreneurs’ relief reduces the rate of capital gains tax on disposals of certain business assets from 20% to 10%.

Further information can be found at GOV.UK.

Capital gains tax normally leads to lower tax bills than dividends, but not always, so check with your personal tax accountant first. If you do not have a personal tax accountant, we can help you.

This information is only provided for general information purposes. For specific advice on your individual circumstances, consult your personal tax advisor. If you do not have a personal tax advisor, we can help you.

Value Added Tax

If the company was or is VAT registered, then the VAT on the costs of the liquidation can be reclaimed by a Liquidator and these funds returned to shareholders when the MVL is ready to close.

Our Simple, Cost Effective Members’ Voluntary Liquidation Service

At Approved Recovery we offer a simple Members’ Voluntary Liquidation service called Solvent Solutions.

Marcus Tout

Insolvency Practitioner

With a passion for delivering exceptional client service, Marcus was eager to start up a firm of Insolvency Practitioners providing liquidations to small companies.

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Our Key Services

Approved Recovery specialises in providing Liquidations to small companies nationwide.

Not sure where to start? Please feel free to contact us directly to learn more.

Over 49 years combined small business experience

Speak with a Licensed Insolvency Practitioner

We are a small business dedicated to providing exceptional client service. Contact us today and we will be happy to discuss your needs.

Step 1.

Start with a free, no-obligation call with a Licensed Insolvency Practitioner.

Step 2.

Once you choose to proceed, we prepare all required documents and filings electronically saving you time and keeping costs low.

Step 3.

We manage all statutory steps, communicate with HMRC and creditors, and keep you informed at every stage.

Approved Recovery is rated 5 out of 5 on Google Reviews.

Highly Rated by Our Clients

You can read our insolvency practitioner reviews below, and if you would like to leave us a review please do so on Google here. We value client feedback about our insolvency services.

I approached Approved Recovery during a difficult period for my business and asked them to provide advice and guidance on the most appropriate next steps. Marcus was diligent and candid in his advice and really helped me in my time of need throughout the process. I couldn’t have wished for a better provider.

As a qualified management accountant, it is important that any professional advisors I use or recommend to clients meet the standards I expect.
Approved Recovery Limited are professional, very knowledgeable and provide a personal service. I highly recommend their services.

I decided to appoint Approved Recovery after a consultation with Marcus Tout, a licensed liquidator and the founder of Approved Recovery, during which he calmly explained that a liquidator protects the interests of the creditors (not the shareholders) and described how providing certain types of advise would conflict with those interests. This was vastly different from the ‘conveyor belt’ approach proposed by other liquidation practitioners on the market, and I found it reassuring.

The level of service provided by Approved Recovery was truly outstanding and often cannot be found in even the most prestigious professional services firms. Marcus Tout is extraordinarily knowledgeable, highly professional and very responsive. I was extremely impressed with Approved Recovery, and I would highly and confidently recommend their services to anyone.

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Entrepreneurs’ Relief and Members’ Voluntary Liquidations

How do you dissolve an insolvent company with no assets?

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