Insolvency Technical Update - March 2016
Your round-up of recent developments in insolvency.
Amendment to VAT 426 processing address
HMRC has amended the address to which VAT 426 claims should be sent to the following: HM Revenue & Customs, Specialist Office,South Woolwich, VAT 426 Processing Only, DMB 490, BX5 5AB.
The contact telephone number has also been changed to: 03000 515802.
HMRC is also in the process of setting up a GSI e-mail address for VAT 426 work. Details will be circulated as soon as they are available
PPF guidance on legal actions by IPs
The Pension Protection Fund (PPF) has issued a guidance note which explains the PPF’s approach when asked by IPs to consider the merits of, or approve the instigation of, legal action. Where such actions require sanction by the creditors, the PPF expects to be consulted when it is a significant stakeholder in the outcome of the insolvency. The note also details that the PPF expects a firm recommendation from the IP in relation to the proposed litigation and details of the areas that PPF expects the IP to have considered and be able to articulate prior to commencing legal action. The note also explains the PPF’s approach to actions being defended by IPs.
The full guidance note is available on the Insolvency Practitioner pages of the Pension Protection Fund website.
PPF standard documents for restructuring
The PPF has also issued a suite of standard documents for use in restructuring situations. The PPF expects a cash and equity stake in any restructuring it enters into and expects any restructuring to enter into agreements in these forms.
The Pensions Regulator has issued guidance to assist IPs to understand their views on their ability to appoint pension scheme trustees and on the statutory notification requirements of IPs.
Notifying court out of hours administration appointments
The Insolvency Service has issued statutory guidance on notifying out of hours administration appointments to courts in England, Wales and Scotland.
PII requirements for liquidator appointments in the Republic of Ireland
The Irish Auditing and Accounting Supervisory Authority (IAASA) has recently published new Regulations setting out the Professional Indemnity cover requirements for liquidators in Ireland. The Regulations are proposed to come into effect on 1 June, 2016. Further information is available on this page.
Changes proposed to tax treatment of capital distributions in winding up
HMRC has issued draft clauses to the Finance Bill 2016 which if passed will bring some significant changes to the tax implications of Members’ Voluntary Liquidations. The new rules are expected to be applied from 6 April, 2016.
ICAS has submitted a response to the HMRC consultation highlighting sever unintended consequences of the proposed changes.
Alcohol wholesaler registration scheme
From 1 April, 2016 businesses which sell alcohol to other businesses are required to be registered under the Alcohol Wholesaler Registration Scheme operated by HMRC. Further details are available from the gov.uk website.
Protected Trust Deeds Form 4
The AiB has issued a Dear Trustee communication reminding Trustees of their obligations to prepare a Form 4 at intervals of not more than 12 months and to send it to various parties no later than six weeks after the period end. The reminder is in respect of trust deeds entered into on or after 28 November, 2013.
Incapacity – 10 tips to keep your practice going
Practical information to assist with alternate arrangements which are required to be put in place to ensure that insolvency appointments are progresses in the event of an unexpected period of incapacity. Find out more.
CPD opportunities from ICAS
A number of courses are being run by ICAS in the next few months:
Directors’ personal liability – How to minimise the risk
Understanding corporate insolvency
Solvent solutions for companies