Restructuring & Insolvency analysis: The Advocate General, on behalf of HMRC, petitioned the Court of Session in Scotland under section 6(4)(a) of the Insolvency Act 1986 seeking an order to revoke the decisions of the creditors and member of Petrofac Facilities Management Limited (PFML) approving a Company Voluntary Arrangement (CVA). Although there is not one single test for assessing unfair prejudice, it was argued that when looked at using both the ‘vertical’ and ‘horizontal’ comparator test (see: Prudential Assurance Co Ltd v Powerhouse Ltd [2007] EWHC 1002 (Ch)), the CVA had been unfair prejudicial. The court rejected HMRC’s challenge and held that it had failed to demonstrate that the CVA unfairly prejudiced its interests. The court held that when assessing unfair prejudice, it favoured an open-ended and fact sensitive assessment over the more structured ‘vertical’ and ‘horizontal’ comparison, describing those concepts as ‘slightly abstruse’ and cautioning against elevating ‘specific judicial observations…into generally applicable principles’. Written by Lucy McCann, Partner at Brodies LLP.

Under section 78 of the Bankruptcy (Scotland) Act 2016 (Ba(S)A 2016), the sequestrated estate vests in the trustee in sequestration. It does this automatically on the trustee in sequestration’s appointment without any conveyance, assignation or transfer. The sequestrated estate includes all property belonging to or vested in the debtor at the commencement of the sequestration (Ba(S)A 2016, s 79(1)). 'Property' is defined very widely in the Ba(S)A 2016, s 79, and non-exhaustively includes money, goods, rights, land and every description of property wherever situated and also obligations and every description of interest,

The Institute of Chartered Accountants of Scotland (ICAS) has announced multiple insolvency practice updates for August 2025. The Accountant in Bankruptcy has increased the no-evidence utility spending threshold from £143 to £146 per month from 1 October 2025 to 31 December 2025, to account for the increase in the gas and electricity price cap. Sheriff Principal Anwar of the Sheriffdom of Glasgow and Strathkelvin is seeking suitably qualified individuals to apply by 19 September 2025, for the role of court reporter focused on insolvency processes—applicants must be qualified insolvency practitioners with a minimum of ten years’ experience, and remuneration will be paid by way of fees to the insolvent estate. In a recent decision in the Outer House of the Court of Session, Lord Lake refused to grant first orders in the petition filed by Nicholas Parkin seeking the winding up of Ayres Wynd Developments Limited—a decision that provides guidance on the handling of disputed debts in winding-up proceedings.

The Institute of Chartered Accountants of Scotland (ICAS) has published its insolvency technical update to summarise recent developments in insolvency, including: the implementation of The Bankruptcy (Scotland) Amendment Regulations 2024, an update on the common financial tool and standard financial statement (SFS).

The Institute of Chartered Accountants of Scotland (ICAS) has published its insolvency technical update for April 2026, confirming that the Scottish government’s Care Leaver Payment will be excluded from income assessments for contribution orders under the Common Financial Tool (CFT). The update also reduces the threshold for providing evidence of utility expenditure from £146.50 to £137 per month to reflect changes to the Ofgem energy price cap. ICAS further states that the Standard Financial Statement (SFS) spending guidelines for 2026/27 came into force on 6 April 2026 alongside an updated Excel tool, while confirming that the Common Financial Statement will continue to apply as the CFT for statutory debt solutions in Scotland. ICAS also published a revised Code of Ethics, effective from 1 July 2026, introducing updated provisions on tax planning and professional behaviour, although no amendments were made to the insolvency practitioner section of the code.

The Institute of Chartered Accountants of Scotland (ICAS) has published its insolvency technical update to summarise recent developments in insolvency, in several areas including: regulations which came into force in January, a report on the Bankruptcy and Diligence (Scotland) Bill, HM Revenue and Customs (HMRC) insolvency guidance on both tax returns and payments in administrations and recording tax and national insurance for former employees of an insolvent entity.

The Institute of Chartered Accountants of Scotland (ICAS) has published its insolvency technical update for January 2026, which reports that the Accountant in Bankruptcy (AiB) has amended its Notes for Guidance on the Common Financial Tool (CFT). The update revises section 6.8 (essential expenditure), increasing the monthly gas and electricity utility threshold that may be accepted without supporting evidence from £146 to £146.50 per month. The revised threshold reflects changes to the energy price cap and applies for the period 1 January 2026 to 31 March 2026.

The Institute of Chartered Accountants of Scotland (ICAS) has published its insolvency technical update, including recent developments to The Protected Trust Deeds (Miscellaneous Amendment) (Scotland) Regulations 2024, the Bankruptcy and Diligence (Scotland) Bill (now the Bankruptcy and Diligence (Scotland) Act 2024) and the Insolvency Service case management system update.

The Institute of Chartered Accountants of Scotland (ICAS) has published its insolvency technical update for July 2026. The Insolvency Service’s Redundancy Payments Service began trialling an improved RP14/RP14A IP Upload Service on 15 July 2026, introducing clearer error messages, improved validation and upload notifications, with the existing service scheduled for withdrawal in September 2026. HMRC has amended VAT Notice 700/56 by replacing several sections with links to its Insolvency Practitioner’s Handbook and, following an update to form VAT426, increased the threshold above which invoices are requested from £20,000 to £30,000. HMRC has also clarified its approach to members’ voluntary liquidations. The update highlights the UK government’s consultation on whether insolvency rules for England, Wales and certain Scottish procedures remain clear, proportionate and suitable for modern practice, including in relation to procedure, creditor engagement, remuneration and digital processes. The consultation closes on 6 October 2026.

The Institute of Chartered Accountants of Scotland (ICAS) published its insolvency technical update to summarise recent developments in insolvency, including: The Protected Trust Deeds (Miscellaneous Amendment) (Scotland) Regulations 2024, the Bankruptcy and Diligence (Scotland) Bill and debt relief order (DRO) changes.

The Institute of Chartered Accountants of Scotland (ICAS) has published its insolvency technical update for June 2025 which includes: major changes to the Bankruptcy and Diligence (Scotland) Act 2024 (Commencement No.2, Transitional and Saving Provisions) Regulations 2025 (SSI 2025/107) and a Sheriff Court's ruling as well as several other important updates for insolvency practitioners and financial professionals.

The Institute of Chartered Accountants of Scotland (ICAS) has published its insolvency technical update for June 2026, confirming that the Insolvency (England and Wales) (Amendment) Rules 2026 came into force on 22 June 2026. The Rules make mainly technical amendments, including changes to electronic delivery requirements and the threshold for certain creditor bankruptcy petitions in the High Court or the County Court at Central London. ICAS also states that office holders must consult the committee before exceeding an agreed fee estimate. The update further notes that changes to the UK anti-money laundering framework came into force on 30 June 2026, including amendments on enhanced due diligence, geographic risk assessment and sterling thresholds. ICAS also confirms that the Insolvency (Amendment) Act (Northern Ireland) 2026 has received Royal Assent, although most provisions are not yet in force. The update also covers car finance claims in insolvency appointments, Scottish sheriff officer fee changes from 25 September 2026, the revised ICAS Code of Ethics and the Joint Insolvency Committee consultation on proposed changes to SIP 2.