| Guvnor

A members' voluntary liquidation can keep capital treatment on the money you take out where the amount is large. Striking off suits smaller amounts.

MVL vs strike-off comparison

Key differences between a members' voluntary liquidation (MVL) and voluntary strike-off for closing a solvent company.

Professional required (MVL): Yes - authorised insolvency practitioner appointed as liquidator
Professional required (strike-off): No

Cost (strike-off): £13 online or £18 on paper, Companies House fee only
Tax on distributions (MVL): Capital gains tax on the distribution; Business Asset Disposal Relief may apply if its conditions are met
Tax on distributions (strike-off, £25,000 or less): Capital treatment if the conditions in CTA 2010 s.1030A are met
Tax on distributions (strike-off, over £25,000): Treated as income and charged to Income Tax

Remaining assets (MVL): Distributed to shareholders
Remaining assets (strike-off): Pass to the Crown (bona vacantia)
Timeline (strike-off): Struck off once the 2 months stated in the Gazette notice have passed
Trading restriction (strike-off): Company must not have traded or sold off stock in the last 3 months
Winding-up anti-avoidance rule: A winding-up distribution can be taxed as income where a 5% shareholder in a close company carries on a similar trade within 2 years and avoiding tax is a main purpose (ITTOIA 2005 s.396B)

Capital Gains Tax rates for MVL distributions 2026/27

CGT rates applicable to MVL capital distributions without BADR. Pure data reference.

Basic rate taxpayer (2026/27): 18% on gains within the basic rate band
Higher/additional rate taxpayer (2026/27): 24%; also applies to any gain above the basic rate band
Annual exempt amount 2026/27: £3,000 for individuals

Distributions in the course of winding up are excluded from income distribution definition by CTA2010 s.1030 and treated as capital. Capital distributions are treated as part disposal of shares under TCGA92 s.122.

Capital Gains Tax rates (opens in a new tab)

Close a solvent company using MVL

Use a members' voluntary liquidation to take out remaining funds as capital

Strike off your company

Close a company that has stopped trading and has no debts

Close your company if it is no longer needed

Close a solvent company using MVL

Strike off your company