How Much Does a CVL Cost?
Cost is one of the first questions most directors ask when considering liquidation. At Lennox Insolvency, we believe the answer should be clear from the outset.
We will review the company’s position before asking you to commit to anything and confirm what the quoted price includes. If there are circumstances likely to make the case more complex, we will explain those before you decide whether to proceed.
For a straightforward Scottish Creditors’ Voluntary Liquidation, our entry-level price starts from:
Scottish CVL
from
£3,500
+ VAT and disbursements
(usually between £400 to £650)
Why does the cost of a CVL vary?
No two companies are identical. The amount of work required to place a company into liquidation depends on its financial position, records, assets, creditors and the circumstances leading to insolvency.
A small company with straightforward accounts, limited assets and a manageable number of creditors will normally require less work than a business with complex assets, incomplete records or significant issues that need to be investigated.
That is why we carry out a short initial review before confirming the price.
What is included in our entry-level CVL price?
Our entry-level price is intended for straightforward Scottish company liquidations. The final list of included work will be confirmed before launch, but we expect a standard case to include the core work required to prepare for and place the company into CVL.
- Initial review of the company’s financial position
- Advice to the directors on the proposed liquidation
- Preparation of the necessary CVL documentation
- Preparation of the company’s statement of affairs
- Preparation of shareholder documentation and resolutions
- Notification of creditors
- Arranging the creditors’ decision procedure or deemed consent
- Required statutory notices and advertisements associated with the appointment
- Appointment of the liquidator
- Guidance for directors throughout the appointment process
Before this page goes live, this list will be matched precisely to our formal engagement terms so there is no ambiguity about what the quoted price covers.
What could make a CVL more expensive?
Additional work may be required where the company’s affairs are more complicated than a standard liquidation.
Examples can include:
- Large numbers of creditors
- Complex or unusual company assets
- Incomplete or significantly out-of-date accounting records
- Property interests
- Significant book debts requiring additional work
- Complex employee issues
- Ongoing litigation or legal disputes
- Transactions requiring substantial additional investigation
- Complex group or intercompany balances
- Overseas assets or creditors
- Other circumstances requiring substantial work outside the normal CVL process
The existence of one of these issues does not automatically mean the case will be expensive. It simply means we may need more information before agreeing the appropriate basis of the engagement.
Where we identify additional work before appointment, we will explain it and its likely cost before you decide whether to proceed.
Who pays for a Creditors’ Voluntary Liquidation?
The fact that a company is insolvent does not necessarily mean it has no money or assets available.
Depending on the circumstances, the cost of progressing a liquidation may be funded from:
- Cash held by the company
- Realisable company assets
- Money owed to the company
- A contribution made by shareholders or directors where the company does not have sufficient resources
Company assets belong to the company and must be dealt with properly. You should not simply sell assets, withdraw company money or make payments to fund a liquidation without first taking advice on the correct treatment.
Do directors have to pay for the liquidation personally?
Not necessarily.
If the company has sufficient cash or realisable assets, company resources may be available towards the costs of the insolvency process.
Where the company genuinely has no funds or assets available, a director or shareholder may choose to make a contribution so that a voluntary liquidation can proceed.
Making such a contribution does not in itself mean that the director has become personally liable for all of the company’s debts. It is simply a way of funding the chosen insolvency procedure.
Can company assets be used towards the cost?
Potentially, yes.
Many insolvent companies still have some value in assets such as:
- Cash at bank
- Vehicles
- Plant and machinery
- Stock
- Office or computer equipment
- Customer debts
- Intellectual property
- Other company-owned assets
We will establish what assets the company owns and explain how they should be dealt with. Directors should not transfer, sell or dispose of company assets without considering the company’s insolvency position and obtaining appropriate advice.
What if the company has no money at all?
This is a common situation and it does not mean that you should avoid taking advice.
We will first establish whether the company genuinely has no resources. Directors sometimes assume there is nothing available even though the company may still have assets, customer debts, tax refunds or other value that needs to be considered.
If there are genuinely insufficient company resources to fund a voluntary liquidation, we can discuss the practical alternatives with you.
What if the company owes most of its money to HMRC?
HMRC arrears do not prevent a company from entering a CVL.
Companies frequently enter liquidation owing PAYE, VAT, Corporation Tax or other amounts to HMRC. HMRC will normally participate in the liquidation as a creditor in accordance with its legal status for the particular debt.
If the company might still be viable, it may also be appropriate to consider whether an HMRC Time to Pay arrangement or another restructuring option is realistic before proceeding with liquidation.
Is the cheapest CVL always the best option?
No. Price matters, but directors should also understand who they are instructing and what service they will receive.
A CVL is a formal statutory process. The liquidator must be an authorised insolvency practitioner. Official guidance confirms that liquidators taking office in Scottish company insolvencies must be appropriately authorised.
When comparing providers, directors should consider:
- Who will actually advise them
- Whether an authorised insolvency practitioner is directly involved
- Whether the adviser genuinely understands Scottish insolvency procedure
- Exactly what the quoted price includes
- What could result in additional costs
- How accessible the team will be throughout the process
- Whether the firm has a genuine Scottish presence
Lennox aims to combine competitive pricing with experienced professional advice rather than competing on price alone.
Why can Lennox offer competitive Scottish CVL pricing?
We have designed Lennox around a focused service for directors of Scottish companies rather than a large general financial-advice operation.
For straightforward liquidations, efficient systems and a clearly defined process allow us to offer competitive entry-level pricing while maintaining direct access to experienced insolvency professionals.
Where a company is more complicated, we will identify that at the outset rather than advertise one price and then leave the director uncertain about the actual cost.
What about the liquidator’s fees after appointment?
The administration of a liquidation continues after the company has formally entered CVL.
The liquidator may need to realise assets, agree creditor claims, deal with employees, investigate transactions, report on director conduct and complete the statutory administration of the estate.
The liquidator’s remuneration and outlays are dealt with under the Scottish insolvency rules. The basis on which they are determined and paid will be explained in the formal insolvency documentation.
This is separate from simply presenting directors with an unexplained headline price. Our aim is to make clear at the outset what you are being asked to pay, what it relates to and what happens after appointment.
CVL cost FAQs
How much does it cost to liquidate a company in Scotland?
Lennox’s entry-level price for a straightforward Scottish CVL will be: £3,500 plus VAT and disbursements (usually between £400 to £650). The exact cost depends on the company’s circumstances and will be confirmed after an initial review.
Can the company pay its own liquidation costs?
Company cash and assets may be available towards the costs, depending on the circumstances. Company property must be dealt with properly, so directors should take advice before using or disposing of assets when the company is insolvent.
What happens if the company cannot afford a CVL?
We will first look for company assets or resources that may be available. If there are genuinely insufficient funds, we can explain whether a director or shareholder contribution is practical and what other options may exist.
Do I have to pay all of the company’s debts before it can be liquidated?
No. A CVL is specifically an insolvency procedure for a company that cannot pay all of its debts. Creditors make claims in the liquidation and available funds are dealt with through the insolvency process.
Will you tell me the cost before I agree to proceed?
Yes. We will review the company’s circumstances and explain the proposed basis of the engagement before asking you to proceed.
Does the initial discussion commit me to liquidation?
No. The purpose of the initial discussion is to understand the company’s position and establish what options are realistically available.
Get a clear price for your Scottish company liquidation
If you are considering closing an insolvent company, we can usually establish very quickly whether it is likely to qualify for our straightforward CVL pricing.
Tell us a little about the company and we will explain the likely cost, what is included and what happens next.