What are the costs of liquidation?

The cost of liquidation varies depending on the size and complexity of the company, but it generally ranges from a few thousand pounds for small companies to significantly more for larger businesses with complex assets. In a CVL, costs include the insolvency practitioner’s professional fees, disbursements for statutory notices and filings, and any legal costs. These fees are normally paid from the realisation of company assets, not personally by the directors, unless the company has no assets. In compulsory liquidation, the Official Receiver initially handles the process, but if assets are significant, a licensed insolvency practitioner may be appointed and their costs are covered by asset sales. While liquidation can be expensive, it ensures a structured, legal closure of the company and provides protection for directors if handled responsibly. Directors should always obtain clear fee estimates from insolvency practitioners to understand costs before proceeding.