Nationwide Insolvency Practitioners
  • Home Page
  • About Us
  • News
  • Contact Us

Call FREE Business Rescue Advice: 0300 303 8284

Request a consultation
  • Liquidation
    • Company Liquidation
    • Creditors’ Voluntary Liquidation
    • Members’ Voluntary Liquidation
    • How Does it Work?
    • How Long Does it Take?
    • How Much Does it Cost?
  • Administration
    • Company Administration
    • Advantages and Disadvantages of Administration
    • Pre-Pack Administration Process
  • CVA
    • Company Voluntary Arrangement
  • HMRC Debts
    • HMRC Arrears
    • HMRC Time-to-Pay Arrangements
  • Winding Up Petitions
    • How Do Winding Up Petitions Work?
    • How to Stop a Winding Up Petition
  • Help Centre
  • Get a Quote
    • Liquidation Quote
    • Administration Quote
    • CVA Quote

Expert Advice 0300 303 8284

  • Free Advice

Do you need Advice, or want to close your business?

    Your data is secure
    1. Home
    2. News
    3. How long does voluntary liquidation take?

    How long does voluntary liquidation take?

    Latest News

    [vc_row 0=””][vc_column][vc_column_text 0=””]The purpose of a members’ voluntary liquidation (MVL) is to wind up a solvent limited company and to distribute the assets to the shareholders as capital rather than income, therefore incurring preferential personal tax rates. Understandably, shareholders are often keen for such distributions and company dissolution to take place as soon as possible following the appointment of an insolvency practitioner (IP). Here we examine how long this typically takes, what needs to happen to enable this, and how accountants and company directors can help to speed this process up.

    Timescale

    Assuming that all liabilities have been settled prior to the appointment of an IP, and all required information provided, distribution of company assets to shareholders can take place as soon as 21 days (the minimum time given for creditors to submit claims following liquidation). The time estimated for case closure and subsequent dissolution is more uncertain, however, as it is dependent upon HMRC clearance. As a guide, we have historically estimated three months from appointment, but recently it has taken longer.

    Information Required

    Directors, shareholders, and company accountants will be provided with an information request list once the IP has been engaged to assist with carrying out the liquidation process. This will include things such as HMRC references, details of assets and liabilities, bank details, and identification documents. The shareholders will be required to swear a declaration of solvency in the presence of a solicitor.

    How to speed the process up

    The liquidation process, including asset distribution and closure will run more smoothly if the following has taken place prior to the appointment of an IP:

    • Information request list answered in full;
    • All HMRC returns and liabilities have been calculated, submitted, and paid;
    • All other liabilities settled;
    •  Appointment with solicitor arranged to swear declaration of solvency
    • Company Bank balance transferred to IP’s client account following engagement as banks can take months to process a transfer once notified of the liquidation

    To find out more about the liquidation process, take a look at our liquidation advice online.

    Contact the Insolvency experts

    For more information regarding the voluntary liquidation process, and how our team of experts can support your business, please get in touch. You an call our office directly on 0339203308 or contact us online.[/vc_column_text][/vc_column][/vc_row]

    Categories

    • Bankruptcy
    • Business Rescue
    • COVID-19 Advice
    • Debt Advice
    • Frequently Asked Questions
    • Insolvency
    • Latest News
    • Liquidation

    Accreditations

    Chat with us

    Our Costs

    At the Insolvency Experts we think that our service offers excellent value for money. Depending on your circumstances, our services can even end up being effectively free of charge.


    Get a quote
    Get free advice

    © The Insolvency Experts 2017

    The Insolvency Experts is the trading name of Cowgill Holloway LLP registered at Regency House, 45-53 Chorley New Road, Bolton BL1 4QR and registered in England and Wales with registered number OC316195 with offices in Bolton and Manchester.

    Legal

    • Privacy Policy
    • Site Map
    • Terms & Conditions

    Call us now

    0300 303 8284