Taxation in corporate insolvency—the principal issues in outline
Produced in partnership with David Irvine of Kirkland & Ellis LLP, Stuart Pibworth of Weil, Gotshal & Manges (London) LLP and Philip Ridgway of Temple Tax Chambers
Taxation in corporate insolvency—the principal issues in outline

The following Tax guidance note Produced in partnership with David Irvine of Kirkland & Ellis LLP, Stuart Pibworth of Weil, Gotshal & Manges (London) LLP and Philip Ridgway of Temple Tax Chambers provides comprehensive and up to date legal information covering:

  • Taxation in corporate insolvency—the principal issues in outline
  • Taxation and insolvency
  • Effects on accounting periods
  • Consequences of accounting periods on the use of tax losses
  • Effects on tax groupings
  • Trade cessations
  • Set-off
  • Tax as an expense of the administration or liquidation
  • CVAs and Schemes of Arrangement
  • Debt Releases
  • more

FORTHCOMING CHANGES relating to insolvency and tax: Finance Bill 2019–20 introduces provisions where:

  1. with effect for business insolvencies that commence on or after 6 April 2020, HMRC becomes a secondary preferential unsecured creditor (moving up from a non-preferential unsecured creditor) in respect of the following taxes (and regardless of when the tax debt was incurred): income tax, employee National Insurance contributions and student loan repayments collected through PAYE and construction industry scheme deductions and VAT and any penalties or interest arising from such taxes (for more information, see News Analyses: Draft Finance Bill 2019-20—changes to protect tax in insolvency with HMRC to become preferential creditor and Draft Finance Bill 2019–20—Tax analysis—Changes to protect tax in insolvency—HMRC to become preferential creditor), and

  2. with effect for tax periods ending, and to facilitation penalties determined and issued, on or after the date of Royal Assent, HMRC can issue joint liability notices to make directors and other persons involved in tax avoidance, evasion or repeated corporate insolvencies jointly and severally liable for the tax liabilities of a company (or to make members or shadow members jointly liable for the tax liabilities of a limited liability partnership (LLP)) where the company (or LLP) is subject to, or there is a serious possibility of it being subject to, an insolvency procedure (for more information, see News