Bolstering legislation around Insolvency and Restructuring
In the UK, we have world-leading Insolvency and Restructuring legislation that has evolved over decades. Unfortunately, it is true that elements of our regime originally created to promote rescue, turnaround, and entrepreneurship are sometimes abused by a minority.
The insolvency team at Mercer & Hole, therefore, welcomes the new measures announced today in the Spring Statement whereby HMRC, Companies House, and the Insolvency Service are delivering a joint plan to tackle those using contrived insolvencies to evade tax and write off debts owed to others. The measures include increasing the use of upfront payment demands, making more directors personally liable for company taxes, and increasing the number of enforcement sanctions to double the amount of tax protected to £250 million by 2026-27.
We hope they will achieve their desired effect of holding that minority to account, thus adding more credibility to an already excellent regime.
Contact us
Please don’t hesitate to contact myself or your usual Mercer & Hole contact if you have any questions around the new measures announced today.
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