I am retired and receive a state and private pension. I still have a company that has not traded for some years but has over £100,000 in cash, no debts or creditors. Should I take a dividend each year at 10.75% tax (from 6 April 2026) or just a straight members voluntary liquidation (MVL) at 18% tax? 

Arthur replies: 

Obviously, 10.75% is a better rate of tax than 14%. But taking all the money now means: (a) you can invest the money now, and earn interest; and (b) you are protected against increases in the dividend tax rate in the future. In fact, from 6 April 2026, the basic rate dividend tax rate increases from 8.75% to 10.75%.