The short answer
A Members’ Voluntary Liquidation (MVL) typically costs £1,500 to £3,000 plus VAT for a straightforward solvent company. It is the most cost-effective way to extract retained funds where you are taking out roughly £25,000 or more, because distributions are treated as capital rather than income and may qualify for Business Asset Disposal Relief. The liquidator must be a licensed insolvency practitioner.
An MVL is the formal way to wind up a solvent company — one that can pay all its debts — and return the surplus to shareholders tax-efficiently. The fee is modest compared with the tax it can save, which is why it is the standard exit for directors closing a profitable company. Here is what it costs in 2026.
MVL cost at a glance
- Typical fee £1,500–£3,000 +VAT
- Best when extracting Roughly £25,000+
- Tax treatment Capital, not income
- Possible relief Business Asset Disposal Relief
- Run by A licensed insolvency practitioner (liquidator)
- Requires Declaration of solvency by directors
What you pay, and why it is low
An MVL is far cheaper than an insolvent liquidation because the company can pay everyone — there are no creditor disputes to settle, no conduct investigations, and no fight over assets. The liquidator’s job is largely administrative: settle any remaining liabilities, deal with HMRC, and distribute the surplus to shareholders. That is why a straightforward case sits in the £1,500–£3,000 plus VAT range.
Why the fee usually pays for itself
The real value of an MVL is tax. In a solvent winding up, distributions to shareholders are treated as capital and taxed as a capital gain, rather than as income (dividends). Where you qualify for Business Asset Disposal Relief, the gain can be taxed at a reduced rate. For larger reserves, the capital treatment and relief can save far more than the liquidator’s fee, which is why an MVL is generally recommended once you are extracting around £25,000 or more.
- Capital, not income — distributions are charged to capital gains tax rather than as dividends.
- Relief may apply — Business Asset Disposal Relief can reduce the rate where conditions are met.
- Declaration of solvency — directors must formally swear the company can pay its debts in full within 12 months.
| Route | Typical cost (2026) | Company status |
|---|---|---|
| MVL | £1,500–£3,000 +VAT | Solvent — can pay all debts |
| CVL (small) | £4,000–£6,000 +VAT | Insolvent — cannot pay debts |
| Strike-off | Small Companies House fee | Solvent, low reserves only |
What the fee includes — and what sits on top
The headline range covers the liquidator’s professional fee for running the solvent winding up, but a few disbursements sit on top and are worth asking about up front. These typically include the liquidator’s statutory bond, advertising the liquidation in The Gazette, and any accountancy work needed to prepare final accounts and tax computations. None of these is large, but a quote that looks unusually cheap may simply have left them out. A clear MVL quote should state the fee, the disbursements, and whether VAT is included, so you can compare like with like.
When a simple strike-off is enough instead
If the reserves to extract are small — broadly under £25,000 — a voluntary strike-off via Companies House can be cheaper, as the saved tax may not justify an IP’s fee. Above that, the capital treatment usually makes the MVL worthwhile. The right answer depends on the size of the distribution and your personal tax position, so it is worth a short conversation before deciding. For a full comparison of solvent and insolvent options, see members’ voluntary liquidation and our wider liquidation cost guide.
Closing a solvent company and want to keep the tax efficient?
A licensed insolvency practitioner can confirm whether an MVL is right and quote the fee against the tax it saves. Speak to one before you distribute funds.
Frequently asked questions
How much does an MVL cost?
For a straightforward solvent company, typically £1,500 to £3,000 plus VAT, with disbursements such as bonding and statutory advertising on top.
When is an MVL worth it?
Generally once you are extracting around £25,000 or more, because the capital tax treatment and any Business Asset Disposal Relief usually save more than the fee.
What is Business Asset Disposal Relief?
A relief that can reduce the capital gains tax rate on qualifying business disposals, including distributions in a solvent liquidation, subject to eligibility conditions and lifetime limits.
Can I use an MVL if my company has debts it cannot pay?
No — an MVL requires a sworn declaration of solvency. An insolvent company must use a CVL instead.
Sources & further reading
- GOV.UK — Members’ voluntary liquidation
- HMRC — Business Asset Disposal Relief
- Insolvency Act 1986 — declaration of solvency (s.89)
- The Insolvency Service — guidance for company directors
- ICAEW / IPA — licensed insolvency practitioner registers
This guide is general information, not formal insolvency advice. Your situation must be assessed by a licensed insolvency practitioner before you act.