1.1 Liquidation Fees

The fees we charge are based on a scale to reflect the risks and responsibilities of estates of different sizes and complexity and varying numbers of directors, persons of significant control and members. The size of an estate, expressed by gross asset value [GAV] and the liquidation fees, subject to VAT, are as follows:

Discounts to fees shall be applied for groups of companies, with 2 or more companies with common ownership being placed in liquidation at the same time. Additional charges shall apply, where:

1.1.1. There are more than 2 directors/persons of significant control [PSC] in total - an additional charge of £75 plus VAT shall be charged for each additional director and PSC in excess of 2 in total, in view of the additional costs of anti-money laundering checks/on-boarding etc.

1.1.2. There are more than 3 members - an additional charge per member [from the 4th member] shall be as follows: Total: 4-5 members - £60 per member; 6-9 members - £50 per member; 10-20 members - £45 per member; 20-50 members - £40 per member; and 50+ members - £P.O.A.

1.1.3 Formal Assignment/Transfers of assets in specie - Deeds of Assignment [book debts/loan books/other debtors including inter-company balances, portfolios of investments, royalties, intellectual property etc., Transfer of Freehold/Leasehold Property - fees from £450 plus VAT per Deed, but subject to discount if more than one Deed is required

1.1.4 If the company has/had a full VAT registration, VAT may be recovered in the liquidation where possible at a charge of £100 plus VAT per VAT 427 claim in respect of the costs of liquidation and any professional fees: solicitors, accountants, agents/surveyors

1.1.5 In the event the company's deregistration from VAT is not applied for online pre-liquidation by the client/their accountant, an additional charge of £125 plus VAT would be payable for manual [postal] deregistration, which could also delay VAT clearance by more than 3 months

1.2 Disbursements

1.2.1 Bonding insurance - it is a legal requirement that each estate is insured by the appointed insolvency practitioner and the premium payable is based on the following bands of gross asset value.

Source: AUA Insolvency Risk Services Limited - Sterling Ford - 1st March 2022

1.2.2 Other disbursements including statutory advertising - £308 plus VAT - the insertion of 3 notices [Resolutions, Appointment of Liquidator and Notice of Intended Distribution] in the appropriate Gazette [London, Edinburgh and Belfast], governed by the location of a company's registered office [England &Wales, Scotland and N. Ireland].

General points to note:

1. Our MVL Quotes are provided for an 'execution/implementation only' MVL service on the strict understanding that companies, their directors, members and PSCs/beneficial owners have obtained appropriate and comprehensive tax, financial and legal advice on the suitability of an MVL to their particular circumstances, the availability of any tax advantages including entrepreneur's relief and the likelihood of the imposition of any penalties and higher rates of tax if the Targeted Anti-Avoidance Rule introduced by HMRC from 6 April 2016 [ see link] or other measures are applied by HMRC in any event, including but not limited to, the event of any future involvement in the same or similar trade or activity, carried on within a period of two years of a winding up, or for whatever other reason.
2. Members can opt to receive an interim cash distribution of up to 75% of the net funds held, within 28 days of appointment [typically paid on the 25th/26th day following appointment], provided the liquidator is in possession of the estate's funds on, or soon after, his appointment, with the balance distributed approximately 4-6months later i.e. as soon as tax clearance has been obtained or the distribution may be deferred until the following tax year if preferred/where possible e.g. until after 6 April 2023] - all distributions [and any other payments, including VAT/tax liabilities to be met and accountants fees] are paid by Faster Payments/CHAPS transfer, subject to Sterling Ford's Terms and Conditions.
3. All members/beneficial owners of all companies in MVL are required to sign a Deed of Indemnity. The indemnity is limited to the sums [or equivalent] [to be] distributed.
4. Once we have been provided the name of the Company, we would check the notice provisions of the Company's articles of association and confirm if the members of the company are not prohibited from consenting to short notice of a General Meeting [at which the requisite special resolution would be passed to place the company in liquidation], so that they may place the company in liquidation whenever they wish.
5. Whilst a copy of the Declaration is required to be sent to HMRC, HMRC only relies on the accounts and CT600 return they would receive in due course for the final accounting period, which would be to and include the day immediately before the date of liquidation, which itself represents the start of a new accounting period. So for example, if you wanted to place the Company in liquidation on Tuesday 1st November 2022, then, given HMRC's requirements that there should be NO gaps between the last day of the final pre-liquidation accounting period and the date of commencement of liquidation, the final period's accounts would have to be prepared up to and including Monday 31st October 2022, even if there has been no trading and only a Nil CT600 is to be filed. By doing this the process of obtaining tax clearance would be accelerated. Please note that it is not necessary for the final period's accounts/CT600 to be filed before liquidation, but it is recommended they are filed within 3 weeks after commencement, so as not to delay the receipt of final tax clearance prior to concluding the winding up [and also to avoid being locked out from HMRC online].
6. As interest at the official rate, also referred to as statutory interest', at 8% p.a. is payable on debts from the date of liquidation, including any corporation tax payable for the final pre-liquidation accounting period, we would recommend that all debts be discharged prior to liquidation if at all possible.
7. If relevant, directors/members should seek tax advice regarding HMRC's tax manual which refers to a change in HMRC's treatment of directors' loans when offset against members' entitlements to receive capital distributions.