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Wrong. There are a number of common scenarios where a director's personal assets may be at risk if a company falls into some sort of formal insolvency procedure. The most common ones are continuing to draw dividends from a company long after its profit reserves are exhausted, or trading on for too long after it's clear that the company has no reasonable prospect of recovery. The most important word in the above paragraph is "may". This is a complex situation and you therefore must speak

Solvent Liquidations: MVL

Remember that formal insolvency processes are complicated, and the explanations below are only the tip of the insolvency iceberg!

Although the above heading seems like a contradiction in terms, the Members Voluntary Liquidation (MVL) procedure is an extremely tax efficient way of extracting cash and assets from your company.

Provided the total value of the assets are greater than £25,000 and the purpose for which the company was formed has come to an end (for example, you may be looking to retire) and you have fulfilled the requirements of HM Revenue Customs, you may be able to extract the value from your company for a tax rate as low as 10%. And remember, the value extracted needn’t just be physical cash or bank balances, other assets (eg property) can also be dealt with using the MVL procedure.

Obviously, each company case is different, so if you find yourself with a solvent company, and you need to get the assets out – call Dodd Rescue – and we’ll point you in the right direction.

To find out more about how we can help please call either Carol, Jackie or Jeanette on 01768 864466.