In the UK, when a company has fulfilled its purpose—be it due to shareholder retirement, asset realisation, or other business decisions—a Members’ Voluntary Liquidation (MVL) is often the most suitable and efficient way to wind down operations.
MVL is a formal company closure process initiated voluntarily by the directors, used only when the company is solvent (i.e. has more assets than liabilities). A licensed insolvency practitioner oversees the entire process, ensuring debts are settled and any remaining assets are distributed legally and tax-efficiently to shareholders. It’s a safe, structured and compliant way to close a company.
Compared to other routes—like compulsory liquidation or being struck off by Companies House—MVL offers a controlled exit that protects assets and helps prevent legal disputes or tax investigations in the future.
We once received a real enquiry (not from our client; no identifying information is disclosed, and any resemblance is purely coincidental), which serves as a painful reminder. The enquirer, a non-UK resident, held multiple UK properties through a limited company. However, due to years of neglected compliance, the company was eventually struck off the register by public notice, and all assets—including property—were automatically deemed Bona Vacantia(ownerless property), and transferred to the Crown.
According to what we understand, the owner wasn’t even aware the company was being struck off—missing any chance for remedy or appeal.
We cannot speak to the actions of their accountant, but this case clearly illustrates how choosing a competent, responsible accountant is the first line of defence for safeguarding your investment.
If you're a non-UK tax resident holding or renting out UK property through a UK limited company, you must pay serious attention to your company’s ongoing compliance. It’s not just about submitting one report a year—far from it.
Behind the scenes, you're dealing with:
· Accounting obligations
· Tax filings (Corporation Tax, CT600, etc.)
· Legal responsibilities under the Companies Act
· Notices in The Gazette
· Strike-off warnings
· Liquidation procedures
· New regulatory changes (e.g. ECCTA)
· Asset protection
If you think "this won’t happen to me"—it is happening, and more often than you'd imagine. According to an official announcement from Companies House on July 16, 2025, over 11,500 companies have been struck off the register for non-compliant registered office addresses since the introduction of the Economic Crime and Corporate Transparency Bill 2023. The situation may be more serious than you might think; please see our previous post for details of the official announcement.
In the case mentioned above, the company did have an accountant. But they were paying extremely low fees, and shared a registration address with thousands of other companies. While we can't say for sure that this structure caused the issue, it’s certainly a red flag. If you recognise yourself in this situation, it might be time to re-evaluate your company setup and the quality of services you're receiving.
We’re not saying low-cost equals low-quality. But if someone charges you £30 a monthand claims to cover your entire UK company’s accounts, tax, and filings—you should dig deeper. Price matters, but what matters more is whether your accountant truly understands your business, and acts on your behalf.
Imagine you're a practising accountant in the UK. We all know that wages in the UK are among the highest in the world (just look at the minimum wage). Let’s say £30 a month and it covers everything, including operating costs, staff salaries, and the accountant's income. It's not that low costs are bad, but when they're ridiculously low and claim to cover everything, you need to pay extra attention and scrutinize them more closely. Not for the accountants, but to protect your own assets. After all, your assets are your responsibility. No one cares about your investment more than you do. A trusted, qualified, and experienced accountant is your front-line protector when it comes to your company and asset safety.
MVL offers several clear advantages over other company closure routes:
· Managed by a licensed insolvency practitioner, with full legal compliance
· Strategic use of tax reliefs (e.g. Business Asset Disposal Relief) to reduce CGT
· Transparent, secure, and shareholder-friendly process
Many people wrongly assume they can just “leave a company alone” and everything will be fine. They ignore updates from Companies House or HMRC, don’t keep up with regulation changes, and assume their accountant will handle everything—often without asking any questions.
But your accountant may be managing thousands of companies, and your £30 or £50 per month might not be enough to warrant dedicated attention. Especially now—with legislation like the Economic Crime and Corporate Transparency Act (ECCTA) introducing significant compliance changes for overseas owners—inaction could lead to real risks.
Yes, it may sound stressful, but the sooner you're aware of these risks, the better positioned you are to protect your assets.
If you own a UK company that is no longer trading but still holds assets, or you want to plan a structured closure, deal with asset distribution and tax matters properly—speak to a qualified, experienced accountant.
In our next article, we’ll explore the legal consequences of compulsory liquidation, when it may be triggered, and whether any remedies are available.
If you have questions about Members’ Voluntary Liquidation (MVL) for a UK company, contact Elaga Accountancy now, we’d be happy to assess your company’s situation and walk you through your options.
Choosing the right accounting setup isn't just admin work—it involves compliance, tax planning, risk control, and financial strategy. Don’t rely solely on your gut feeling or a random forum post. The team at Elaga Accountancy brings years of real-world experience to help you make confident, informed decisions, aligned with both your business structure and personal goals.
Whether you're a non-resident owner of a UK limited company, or involved in UK property investment, let our accountants at Elaga be your trusted financial advisor—ensuring every decision safeguards your future.
Get in touch to discuss with us how we can best assist you.