Cheapest Way to Liquidate a Company in the UK: Strike-Off vs MVL vs CVL

The cheapest way to close a UK company is a voluntary strike-off, which costs £13 online at Companies House. But it only works if the company is solvent, has no debts, and pays out less than £25,000 to its shareholders. If the company owes money, a strike-off does not deal with the debts, and creditors such as HMRC can object and have the company restored. If the company holds more than £25,000, a members' voluntary liquidation usually saves more in tax than it costs. The figures below are for England and Wales, checked on 14 November 2026.

Figure 1: An empty office. Closing a company costs £13 by strike-off, £2,000 to £7,000 plus VAT by MVL, and £3,500 to £5,000 plus VAT by CVL.

The four routes and what they cost

Strike-off: £13, and when it works

A strike-off, also called dissolution, removes the company from the register at Companies House. The directors file form DS01, the application is published in the Gazette, and if nobody objects within two months, the company is struck off. The fee is £13 online or £18 by paper, under Companies House fees in force from 1 February 2026. The whole process takes two to three months.

A company only qualifies if, in the previous three months, it has not traded, changed its name, or sold trading assets. It must have no debts that creditors are likely to chase. A strike-off does not write off debts: HMRC and other creditors can object, and a struck-off company can be restored to the register so they can pursue what they are owed. Directors who strike off a company with debts can face personal liability. The £25,000 rule matters too: if the total paid out to shareholders is more than £25,000, the whole amount is taxed as income rather than capital, which is usually the worse outcome.

Figure 2: A small empty office. A strike-off fits a dormant or small solvent company with no debts to settle.

MVL: the tax-saving route for solvent companies

A members' voluntary liquidation is the formal wind-down for a solvent company with meaningful reserves. The directors swear a declaration of solvency, the shareholders pass a special resolution, and a licensed insolvency practitioner sells the assets and pays out the surplus. It typically costs £2,000 to £7,000 plus VAT for a straightforward case, with a flat £3,500 plus VAT quoted by several firms, and takes six to twelve months.

The point of an MVL is tax. Payouts are treated as capital, not income, so shareholders can claim Business Asset Disposal Relief, which charges 18% on the first £1 million of qualifying gains for disposals on or after 6 April 2026. The worked example below is our own calculation for a company with £100,000 of reserves and a higher-rate taxpayer shareholder. By strike-off, the £100,000 is taxed as income at 40%, leaving £59,987 after the £13 fee. By MVL, the same £100,000 is taxed at 18%, leaving £77,800 after £18,000 of tax and £4,200 of fees at £3,500 plus VAT. The MVL leaves about £17,813 more in the shareholder's pocket, even after paying the liquidator. The exact saving depends on the shareholder's tax band and whether Business Asset Disposal Relief applies.

CVL: the route for insolvent companies

A creditors' voluntary liquidation is the route directors start themselves when the company cannot pay its debts. A licensed insolvency practitioner is appointed as liquidator, sells what the company owns, and pays the creditors as far as the money goes. A straightforward CVL costs a fixed £3,500 plus VAT with some firms, or £4,000 to £5,000 plus VAT with others, plus £500 to £1,500 of expenses for the insolvency bond, Gazette notices, and postage. It takes six to twelve months of work, with dissolution three months after that.

A CVL is the cheapest proper route for an insolvent company because the directors stay in control of the timing and the choice of practitioner. The cost is usually paid from company assets, or by the directors, sometimes with help from a director redundancy claim. Statutory redundancy pay is capped at £22,530, based on weekly pay capped at £751 from 6 April 2026, and eligible directors can use that claim to help fund the CVL.

Compulsory liquidation: the route to avoid

Compulsory liquidation is what happens when a creditor takes the company to court. The petitioning creditor pays a £352 court fee and a £2,600 petition deposit, plus their own legal costs of about £1,500 to £4,000, and the Official Receiver takes over. It is the most expensive and slowest route, taking 12 to 36 months, and the directors lose control of the process. Acting first with a CVL is cheaper and cleaner in almost every case.

Which route is cheapest for you

• Solvent, no debts, under £25,000 to pay out: strike-off at £13. It is the cheapest way to close a company, and the only one that costs less than a hundred pounds.
• Solvent, more than £25,000 to pay out: an MVL. The fees are higher, but the capital tax treatment usually saves far more than the MVL costs.
• Cannot pay its debts: a CVL at £3,500 to £5,000 plus VAT. Do not use a strike-off: creditors can object and have the company restored.
• A creditor is already taking you to court: take advice at once. Compulsory liquidation is the most expensive outcome, and acting first is almost always cheaper.

Sources: Company Debt, How Much Does It Cost to Liquidate a Company, 11 November 2026; Business Helpline, 2026 prices; IQ Insolvency, Closing a Limited Company, June 2026; Commenda, How to Dissolve a Company in the UK; Companies House fees from 1 February 2026. Figures checked on 14 November 2026. This page is general information, not legal or tax advice. Speak to a licensed insolvency practitioner before you close a company.

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