Company Liquidation Costs: Full Breakdown & FAQs
Anderson Brookes Insolvency Practitioners help directors close limited companies with debt quickly, legally and with expert guidance every step of the way.
Make Contact Today
Liquidation Costs & Options
If your company is facing financial challenges, understanding the costs of liquidation can help you plan clearly and avoid surprises. This guide gives you a breakdown of expected fees, key factors that affect the total cost, and answers to common questions.
How Much Does Liquidation Cost in the UK?
The cost of liquidating a limited company depends on the type of liquidation and the complexity of your situation. Here’s a quick overview:
| Type of Liquidation | Typical Cost Range | Who Pays? |
|---|---|---|
| Creditors’ Voluntary Liquidation (CVL) | £3,000 – £8,000 + VAT | Company assets, or directors personally if no assets available. The most common type of liquidation for businesses with debt. |
| Members’ Voluntary Liquidation (MVL) | £2,000 – £4,000 + VAT | The solvent company (paid before asset distribution) |
| Compulsory Liquidation | £2,600+ (court & petition fees) | Initiated by a creditor, costs recovered from company assets |
These figures are based on real case data and can vary depending on asset levels, number of creditors, or employee claims.
At Anderson Brookes, we aim to make the costs clear from the start, including what’s included, what’s optional, and what can affect the final fee.
Why Directors Choose Anderson Brookes
With more than 25 years’ experience and thousands of directors helped, we’re trusted by business owners across the UK. You can speak directly with an expert insolvency practitioner and we’ll help you understand your options clearly and quickly. We specialise in working with small and medium businesses and we understand your perspective and priorities.
Ready to
Move On?
If you’re ready to close your company, stop creditor pressure, or just want to understand your next steps, we’re here to talk.
Call us now on 0800 1804 935 or request a call back - we’re here to help.
CVL Costs – Two Sets of Fees Explained
A CVL (Creditors’ Voluntary Liquidation) involves two main costs:
1. Statement of Affairs (SOA) Fee
This fee covers pre-liquidation work by the insolvency practitioner: preparing paperwork, notifying creditors, and convening meetings. It usually ranges from £3,000 to £8,000. If the company has no assets, directors may pay this personally.
2. Liquidator’s Fee
This is drawn only from asset realisations after liquidation begins. If there are no assets, the liquidator must still complete their duties- often without drawing a fee.
What’s Included in MVL Costs?
Members’ Voluntary Liquidation (for solvent companies) typically includes:
Drafting the Declaration of Solvency
Appointing a liquidator
Distributing company assets to shareholders
Official closure and strike off
Because there are assets available, these costs are paid directly from company funds before distribution.
Compulsory Liquidation Costs
Compulsory liquidation is usually initiated by a creditor. The main costs are:
Court petition fee: £343
Insolvency Service deposit: £2,600
Please note that these fees are subject to change.
This is a more stressful route. Directors lose control, cannot appoint their own liquidator, and creditor action is publicly visible. It’s rarely the best option if a CVL is still available.
Can Directors Use Redundancy to Fund Liquidation?
Yes, and many do. If you’ve been a PAYE-paid director for 2+ years, you may be eligible for director redundancy. These claims can often be worth several thousand pounds, which in some cases covers most or all of the CVL cost.
We’ll assess your eligibility as part of your free consultation.
Testimonials
Our clients praise our professionalism, reliability, and the exceptional support we provide during challenging times, helping thousands of company directors through insolvency, liquidation, and business debt solutions.
CVL Cost Influencers
Company size and complexity: Bigger firms take more time to wind down.
Asset realisation: Valuations, sales and legal costs can add up.
Creditor claims: High volumes or complex debt profiles require more work.
Delays: Waiting too long to take action may increase debts and cost.
How to Minimise Liquidation Costs
Act quickly – avoid spiralling debts
Keep accurate records – reduce IP time spent on reconciliation
Work openly with your IP – transparency saves time
Explore redundancy – fund liquidation where eligible
Company Liquidation Costs: FAQs
What are liquidation costs in the UK?
Liquidation costs are the fees and expenses involved in closing a company through a formal liquidation process. They commonly include the insolvency practitioner’s work, statutory notices, and case administration, plus any process-specific costs (for example, court-related fees in compulsory liquidation).
What is the cost to liquidate a company UK?
The cost to liquidate a company in the UK depends on the route taken. A CVL is typically £4,000 to £8,000, an MVL is typically £3,500 to £5,000, and compulsory liquidation is often £3,000 to £5,000+ once the wider costs are factored in. If you share a few details, Anderson Brookes can explain the likely route and the expected cost range.
What’s included in CVL fees?
CVL fees usually cover planning the process, liaising with creditors, handling statutory paperwork and notices, and completing the liquidation administration. The total can increase where records need reconstruction, there are many creditors, or there are employee and HMRC complexities.
Do directors have to pay liquidation costs personally?
Not always. In many CVLs, the liquidation is funded from company assets where there are realisations available. If there are no assets, directors sometimes choose to contribute to enable a formal liquidation, particularly where it is the most appropriate option. We will explain the funding options clearly before you proceed.
Can liquidation costs be paid from the company’s assets?
Yes, where there are assets that can be realised, the liquidation costs and expenses are commonly paid from those realisations. The exact position depends on the asset type, any secured finance, and the overall creditor position.
Is strike off cheaper than liquidation?
A company strike off is usually cheaper, but it is not suitable where the company is insolvent, has creditor pressure, or needs a formal process to deal with liabilities. If there are debts or risks around director conduct, a CVL can be the safer and more appropriate route.
How can I reduce company liquidation costs?
The simplest way to keep company liquidation costs under control is to make the case efficient. Up-to-date accounts, a clear creditor list, complete payroll information, and a clean asset schedule reduce the time needed. At Anderson Brookes, we will tell you what we need upfront to avoid delays and unnecessary cost.
Speak to an Insolvency Practitioner for Free
We’ll help you understand costs, liquidation timescales, and your responsibilities with no pressure or upfront commitment.
Call us on 0800 1804 935 or email advice@andersonbrookes.co.uk to book a free consultation today.
We’re here to give honest, practical advice – tailored to your business.
Can you liquidate your limited company?
CVL Case Studies
Voluntary Company Liquidation Examples
CVL Case Study – Pub
John's Pub in the North West John faced debts of £70,000, mainly owed to HMRC. After failed attempts at payment arrangements, we helped him close the business through a CVL and minimise his personal exposure. We managed employee claims, creditor communication, and asset sale - providing a structured way forward.
CVL Case Study – Large FM Company
Facilities Management Firm, Midlands With turnover of £22m and unmanageable tax debt, the directors chose a CVL. We managed the entire process, ensuring creditors were repaid in an orderly way. The business was closed within weeks, protecting the directors from further risk.
CVL Case Study – Retailer
Clothing Boutique in Manchester The business had built up £45,000 in unpaid rent and HMRC arrears after a drop in footfall. With no realistic way to recover, the owner contacted us for advice. We supported a voluntary liquidation, managed creditor notices, handled employee redundancies, and helped the director draw a line under the business legally and quickly.
CVL Case Study – Construction Company
Joinery Contractor, Burnley With materials debt and cashflow issues totalling over £120,000, this Burnley-based firm could no longer trade safely. We stepped in to close the company via CVL, arranged asset valuations, handled subcontractor queries, and supported the directors with their legal responsibilities, giving them clarity and peace of mind.
