This is an official process that’s conducted by a licensed insolvency practitioner. The lower tax liability accessible through MVL is a significant benefit for you, as the money you extract from the business is taxed as capital.
You may be able to reduce your liability further if you’re eligible for Business Asset Disposal Relief. This used to be known as Entrepreneurs’ Relief, and it lowers your effective rate of tax to 10%.
Members’ Voluntary Liquidation is appropriate for companies with no debts and the fact that it’s administered by a licensed insolvency practitioner ensures that all statutory requirements are met.