Members Voluntary Liquidation

 
A Members Voluntary Liquidation is suitable for solvent companies and is often used to unlock company assets in a tax efficient manner.
 
One of the main advantages of the process is that the capital gain on the distribution to company shareholders is taxed at 30% as opposed to receiving the funds in the form of a salary which would be taxed at the higher marginal rate. In certain circumstances, shareholders may also be able to avail of Retirement Relief to mitigate any tax liabilty.
 
The key features of a Members Voluntary Liquidation are as follows :
 
• The directors prepare a Declaration of Solvency stating that the company has sufficient assets to pay all its debts within twelve months.
• It is a solvent liquidation with no creditor involvenent.
• Following completion of the liquidation, the company is dissolved.
 
For further information on the process involved or to receive a quotation to carry out a Members Voluntary Liquidation, please contact Ultan McCarthy on 01 444 5260 or
ultan@mccarthyaccountants.ie