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Analysis — Corporation Tax Issues under a CVA

Barry Potter and Bob Hooper outline some of the key corporation tax issues likely to be faced by the tax adviser when dealing with a company under a Company Voluntary Arrangement

A company voluntary arrangement ('CVA') is one of the four main formal insolvency processes available to a company experiencing financial stress. Administration administrative receivership and liquidation (sometimes referred to as a winding up) being the remaining three processes for completeness.

During the last 12 months a number of companies containing famous high street brands have undertaken a CVA. As a consequence the CVA process has significantly increased its profile as a valuable restructuring tool for helping to both maintain and support the solvency of a company going forward.

Against this backdrop this article has been...

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