Rachael Markham (Squire Patton Boggs) considers the potential impact of the proposals to restore HMRC as a preferential creditor in company insolvencies.
Crown prerogative dates back to the Magna Carta entitling the monarch to absolute priority for revenue related debt. Come 6 April 2020 will we really be heading back to feudal times and the year 1215?
The proposal to reinstate Crown preference was announced as part of the Autumn Budget last year and came as a surprise to many. The consultation paper published by HMRC on 26 February (see bit.ly/2NspcO9) seeks the views of individuals shareholders directors lenders companies and insolvency practitioners on the proposal to reinstate Crown preference in part.
However whilst this is a consultation one might conclude from the language of the paper that the decision to introduce this change is a foregone conclusion. The paper glosses over several important...
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Rachael Markham (Squire Patton Boggs) considers the potential impact of the proposals to restore HMRC as a preferential creditor in company insolvencies.
Crown prerogative dates back to the Magna Carta entitling the monarch to absolute priority for revenue related debt. Come 6 April 2020 will we really be heading back to feudal times and the year 1215?
The proposal to reinstate Crown preference was announced as part of the Autumn Budget last year and came as a surprise to many. The consultation paper published by HMRC on 26 February (see bit.ly/2NspcO9) seeks the views of individuals shareholders directors lenders companies and insolvency practitioners on the proposal to reinstate Crown preference in part.
However whilst this is a consultation one might conclude from the language of the paper that the decision to introduce this change is a foregone conclusion. The paper glosses over several important...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
