The following Tax guidance note Produced in partnership with Anthony Davis and Julia Fox of Deloitte LLP provides comprehensive and up to date legal information covering:
This Practice Note:
outlines the main UK tax provisions that apply where a fixed charge receiver sells assets owned by a company, and
answers the important issues that can arise in circumstances where such actions are threatened
This Practice Note considers:
the role of a fixed charge receiver
the fact that the company in receivership remains liable for tax
withholding tax and the receiver
the tax deductibility of the receiver’s fees and expenses
value added tax (VAT) in relation to a company in receivership
issues relevant where the company in receivership is not UK tax resident, and
some practical points
In this Practice Note:
fixed charge receivers are also referred to as receivers
the company whose assets have been charged, and are being sold, is called the company
the creditor (or mortgagee) appointing the receiver is called the appointor, and
it is assumed that the receiver, company and appointor are all unconnected with each other and that there is no tax avoidance motive involved
A fixed charge receiver is appointed by a secured creditor of a company (that is, one holding a charge or mortgage) over a specific asset of a company, usually but not always real property (land and buildings).
The receiver is usually appointed under a power in the charge document and the receiver’s powers
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