Brexit – restructuring and insolvency – useful links
By Steven Wood, Practice Support Specialist (Insolvency)
2 February 2021
Key Legislation
The Insolvency (Amendment) (EU Exit) Regulations 2019
The primary purpose of this instrument is to retain the EU Insolvency Regulation (EU 2015/848) (“the EUIR”) in a form that operates effectively after Exit day. The Regulations maintain a modified version of the EUIR’s jurisdictional tests for the opening of insolvency proceedings that sit alongside the UK’s domestic provisions on jurisdiction rules (Part 1 of the Regulations). The rest of the EUIR, which forms the majority, relies on reciprocity between member States, and so those provisions are repealed.
The amendments to domestic legislation (Parts 2 – 10) are made to remove references to the EUIR where provisions no longer apply or to update references to the revised jurisdiction test provided by Article 1 of the EUIR. Most of the changes previously made to insolvency legislation in 2017 to facilitate the application of the EUIR are revoked by the Regulations.
The Insolvency (Amendment) (EU Exit) (No 2) Regulations 2019
The Regulations make various amendments to the Insolvency (Amendment) (EU Exit) Regulations 2019.
The Insolvency (Amendment) (EU Exit) Regulations 2020
The Regulations make various amendments to the Insolvency (Amendment) (EU Exit) Regulations 2019.
The Insolvency (EU Exit) (Scotland) (Amendment) Regulations 2019
The Regulations protect the existing powers to appoint a receiver under section 51 of the Insolvency Act 1986 and address deficiencies arising in relation to devolved aspects of cross-border insolvency legislation from the withdrawal of the United Kingdom from the European Union, specifically as regards the application of the EUIR in UK law following EU exit.
Insolvency (Amendment) (EU Exit) (Scotland) Regulations 2020
The Regulations make various amendments to the Insolvency (EU Exit) (Scotland) (Amendment) Regulations 2019.
Dear IP
Dear IP 116 provides details of changes affecting the insolvency sector from 1 January 2021, as a result of the end of the EU exit transitional period during which EU rules have continued to apply.
Dear IP 106 sets out the effect of the Insolvency (Amendment) (EU Exit) Regulations 2020 on the Insolvency (EU Exit) Regulations 2019.
Dear IP 86 provides information in relation to the Provision of Services Amendment (EU Exit) Regulations 2018 and The Insolvency (EU Exit) (Scotland) (Amendment) Regulations 2019 detailing amendments to the Insolvency Practitioners Regulations concerning IP insurance and devolved Scottish Insolvency provisions respectively.
Dear IP 83 is a special edition concerning the draft Insolvency (Amendment) (EU Exit) Regulations 2018 (which became the Insolvency (Amendment) (EU Exit) Regulations 2019).
Insolvency Service Guidance
The Insolvency Service has published guidance for insolvency officeholders which seeks to provide some basic information regarding the applicable frameworks in the different EU member states, as a starting point towards seeking recognition for UK insolvency proceedings and dealing with assets in the EU.
HMRC - Customs Authorisations and Insolvency
HMRC has published guidance for IPs who are appointed to businesses which have customs authorisations.
Visit the ICAS Brexit hub – a central source of information and resources for Members, practice and business.