Key tax considerations relevant to appointment of a fixed charge receiver
Produced in partnership with Anthony Davis and Julia Fox of Deloitte LLP
Key tax considerations relevant to appointment of a fixed charge receiver

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:

  • Key tax considerations relevant to appointment of a fixed charge receiver
  • What is a fixed charge receiver?
  • The company remains liable for tax
  • Impact of appointment of fixed charge receiver on tax groupings
  • Does the receiver have to account for withholding tax on interest paid?
  • Are the fees and expenses of the receiver tax deductible?
  • Value added tax
  • Further considerations where the company is not UK tax resident
  • Practical points when a fixed charge receiver is appointed

This Practice Note:

  1. outlines the main UK tax provisions that apply where a fixed charge receiver sells assets owned by a company, and

  2. answers the important issues that can arise in circumstances where such actions are threatened

This Practice Note considers:

  1. the role of a fixed charge receiver

  2. the fact that the company in receivership remains liable for tax

  3. withholding tax and the receiver

  4. the tax deductibility of the receiver’s fees and expenses

  5. value added tax (VAT) in relation to a company in receivership

  6. issues relevant where the company in receivership is not UK tax resident, and

  7. some practical points

In this Practice Note:

  1. fixed charge receivers are also referred to as receivers

  2. the company whose assets have been charged, and are being sold, is called the company

  3. the creditor (or mortgagee) appointing the receiver is called the appointor, and

  4. it is assumed that the receiver, company and appointor are all unconnected with each other and that there is no tax avoidance motive involved

What is a fixed charge receiver?

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