A Members Voluntary Liquidation (MVL) is used to wind up a solvent company — one that can pay all its debts in full. It is typically chosen by business owners who want to close a company they no longer need, retire, or extract accumulated profits in a tax-efficient way. The directors must sign a Declaration of Solvency confirming the company can pay its debts within 12 months. A liquidator is appointed to realise assets, pay all creditors, and distribute the remaining funds to shareholders. An MVL is often more tax-efficient than taking dividends.
