Arrangements under section 110 of the Insolvency Act 1986 (IA 1986) (section 110 arrangements) are often used to divide up a company's business and/or assets into separate undertakings. The arrangements are only available as part of a voluntary liquidation, with proper planning they can be very tax-efficient. At its simplest, a section 110 arrangement is a tripartite arrangement between: • a company in liquidation (the Transferor) acting by its liquidator (the Liquidator) • a new company which acquires all or part of that company's business and/or assets (the Transferee), and • the shareholders of the Transferor The shareholders of the Transferor usually receive, via the Liquidator, as a distribution 'in specie' in the winding up, shares in the Transferee, which constitute all or part of the consideration for the transfer. It is possible to effect business or asset splits and, therefore, there may be more than one Transferee. For more information, see Practice Note: Insolvency Act 1986 section 110 arrangements. The table below sets out certain steps

The time when a company is insolvent or is verging on insolvency.

A person authorised by a regulated body to take appointments in the insolvency of individuals or companies. Also referred to as an Office-holder.

A person authorised by a regulated body to take appointments in the insolvency of individuals or companies. Also referred to as an office holder.

ARCHIVED: This Practice Note has been archived and is not maintained. What is the IPA? The Insolvency Practitioners Association (IPA) is a recognised professional body for the purposes of authorising (licensing) insolvency practitioners (IPs) under the Insolvency Act 1986 (IA 1986). The IPA is the only recognised regulatory body solely involved in insolvency. For further information, refer to the IPA website. What is the Insolvency Practitioners' Handbook? The 12th edition of the Insolvency Practitioners' Handbook 2024 (England, Wales, Scotland and Northern Ireland) brings together in one useful volume most of the key guidance and codes that IPs (and those studying for insolvency exams) need to have at their fingertips. Some parts of the handbook may also be useful for solicitors in practice, in particular section 2 on Statements of Insolvency Practice (SIPs) in the UK. For further information on SIPs, see our Practice Note: Statements of Insolvency Practice—a quick guide. The Insolvency Practitioners' Handbook is made up of six key sections, each of which we link to and

The Institute of Chartered Accountants in England and Wales (ICAEW), Institute of Chartered Accountants of Scotland (ICAS) and the Insolvency Practitioners Association (IPA) have issued guidance addressing the High Court ruling in Noal SCSp (a Luxembourg private equity fund) (formerly called Novalpina Capital Partners 1 SCSp) and other companies v Novalpina Capital LLP (in members voluntary liquidation) and others [2025] EWHC 1392 (Ch). The ruling reinterprets Members Voluntary Liquidations (MVLs) solvency requirements under the Insolvency Act 1986 (IA 1986), requiring actual debt payment within 12 months rather than balance sheet solvency. While this first instance decision is being appealed and is persuasive but not binding, the recognised professional bodies (RPBs) have published interim guidance for practitioners.

STOP PRESS: From 6 April 2017, the Insolvency Rules 1986, SI 1986/1925 were revoked and replaced by the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024. The content in this Q&A may have been affected by this change. Rule 6.135(5) of the Insolvency Rules 1986 (IR 1986) specifically deals with instances where the trustee has to apply to the Secretary of State (SS) for his/her release under

The Insolvency Service has announced that the Secretary of State for Business, Innovation, Science and Trade has accepted a disqualification undertaking from the sole registered director of Signature Works Gold Limited, Lawrence Kenwright. The five-year undertaking, signed by Kenwright days before a scheduled trial, prohibits him from involvement in the promotion, formation or management of a company without court permission. The Insolvency Service found that Kenwright failed to ensure adequate stewardship and corporate governance, having allowed the company to distribute marketing material containing false and misleading information. This includes representations that investors would acquire a legal interest registered at Land Registry in three Liverpool properties in which the company held no registered freehold or leasehold interest. Signature Works Gold Limited, wound up in the public interest in December 2022, recorded liabilities of £4.8 million against assets of less than £100,000.

The Insolvency Service and Companies House have reported that three directors have been fined at City of London Magistrates’ Court, following the first Insolvency Service prosecutions for identity verification offences, under the Economic Crime and Corporate Transparency Act 2023 (ECCTA 2023). Jill White and Modinat Banjo acted as directors while unverified, while Marc Dillon failed to take reasonable steps to prevent White from continuing to act as a director while unverified. All three were also convicted in connection with confirmation statement filing failures.

The Insolvency Service and Companies House teamed up to secure the winding-up of seven companies in the public interest. Investigators said the companies appeared unrelated on the register but were linked by incorporation histories, name changes and comparable business descriptions. Concerns included allegedly false or misleading auditor information, denied audits, lack of registered office addresses and failure to cooperate.

The Insolvency Service has announced Selvendran Ramar, aged 35, from Southampton, sole director of SJSA Ltd has been disqualified as a director for 11 years after he wrongfully obtained a £45,000 Bounce Back Loan (BBL) in July 2020.

The Insolvency Service has announced the disqualification of Romain McLean, director of RMC Associates Limited, from being a company director for 11 years following an investigation into bounce back loan (BBL) fraud. McLean secured £80,000 through two separate loans after overstating his company's turnover by more than £100,000 in the first application and making false declarations in the second. The disqualification began on 30 May 2025 and will run until 2036. McLean has offered a £60,000 settlement payment.