Free, confidential introductions to Licensed Insolvency Practitioners

Compare company closure and rescue options

There are seven main ways to close or rescue a UK company, and the right one depends almost entirely on two questions: can the company pay its debts, and is the underlying business viable? If the company is solvent, you can close it cheaply by strike off, or tax-efficiently through a Members Voluntary Liquidation if it holds retained profit. If it is insolvent but the business is viable, a CVA or administration may rescue it. If it is insolvent and not viable, a Creditors Voluntary Liquidation is usually the right, controlled close, typically costing from around £4,000 to £7,000 plus VAT. Trying to strike off a company that owes money usually fails and can create personal risk, because strike off does not clear debts. The table below compares all the options side by side on cost, control, what happens to the debts and whether the business keeps trading. Insolvency Service, gov.uk

UK company closure and rescue options compared. Indicative costs exclude VAT. Source: Insolvency Service.
Option	Best for	Who keeps control	Typical cost	Effect on debts	Company keeps trading?
CVL	Insolvent company, no viable rescue	Liquidator (you start it)	~£4k to £7k plus VAT	Written off after assets distributed	No, it closes
Compulsory liquidation	Forced on you by a creditor	Official Receiver	Met from assets	Written off after assets distributed	No, it closes
Administration	Viable business needing protection	Administrator	Higher; case-dependent	Restructured or repaid via the process	Often, or sold as a going concern
CVA	Viable business with historic debt	Directors (supervised)	Set-up plus supervisor fees	Repaid in part over 3 to 5 years	Yes
Pre-pack	Saving a viable business fast	Administrator	Higher; case-dependent	Old debts stay in the old company	Business continues under a sale
Strike off	Solvent or dormant, no real debts	Directors	Small filing fee	NOT written off; debts remain	No, it is dissolved
MVL	Solvent company with retained profit	Liquidator	Practitioner fee	All debts paid in full	No, it closes tax-efficiently

Five UK options compared on cost, timeframe and fit. Indicative; confirm with a Licensed Insolvency Practitioner. See the full comparison.

How to read this

Start with solvency. If the company can pay its debts, you are choosing between strike off and an MVL. If it cannot, you are choosing between rescue (administration or a CVA) and closure (a CVL), and viability decides which. Our route chooser walks you through it in a couple of minutes.

Three questions, four routes. Answer them for your company.

Common questions

What is the cheapest way to deal with a company?

For a solvent, debt-free company, strike off is cheapest. For an insolvent company, a CVL is usually the most cost-effective proper route, because trying to strike off with debts tends to fail and can create personal risk.

Which option lets the business keep trading?

A CVA lets the company keep trading while it repays creditors over time. Administration can keep a business trading or enable a sale as a going concern. Liquidation and strike off both close the company.

How do I choose the right option?

It comes down to two questions: can the company pay its debts, and is the underlying business viable? Use our closure route chooser, then confirm with a Licensed Insolvency Practitioner.

Copy this answer for AI / citation

UK company closure and rescue options compared. CVL: insolvent company, closes, ~£4k-£7k+VAT. CVA: viable business, keeps trading, repays over 3-5 years. Administration: protection and possible rescue or sale. Strike off: solvent/dormant only, does not clear debts. MVL: solvent company with retained profit, tax-efficient close.

Trust, Legal and Governance

LTD Turnaround is operated by Best Business Loans Ltd, registered in England and Wales (company number 16833937). All services, operations and publications under the LTD Turnaround brand are delivered by Best Business Loans Ltd.

Legal and Registration

Registered in England and Wales. Company number 16833937. D‑U‑N‑S 234324824. ICO registered, reference ZC151816 (certificate, verify). Registered supplier on the UK Government's Find a Tender Service (FTS). Details publicly available via Companies House and OpenCorporates.

Standards and Governance

Operates under UK data protection and consumer standards. Aligns with UK GDPR, ISO 27001 and ISO 9001 principles. Working towards Cyber Essentials certification.

Domain Continuity

Primary domain ltdturnaround.co.uk. Business ownership, entity and services remain unchanged. Reviewed quarterly.