Insolvency technical update: November 2023
We share our latest insolvency technical update – your round-up of recent developments in insolvency.
HMRC insolvency guidance: Cessation of tax clearance in Members' Voluntary Liquidations (MVLs)
HMRC has announced that, with immediate effect, it will no longer provide pre and/or post-insolvency tax clearance in MVL cases.
IPs should close cases without tax clearance subject to their own professional judgement. This means any requests for clearance already received by HMRC will not be responded to, and any future requests will not be actioned.
An earlier ICAS article may be of assistance to IPs looking for guidance on relevant considerations under the new approach.
Revised Statement of Insolvency Practice (SIP) 3.3 (Scotland) – trust deeds
A revised SIP 3.3 relating to trust deeds is effective for trust deeds signed on or after 1 November 2023.
A summary of the principal changes to SIP 3.3 can be found in our article on this topic.
Mental health moratorium consultation
The Bankruptcy and Diligence (Scotland) Bill contains powers to allow Scottish Ministers to create a mental health moratorium. This would protect people with serious mental health issues from debt recovery action.
The Scottish government has launched a consultation seeking views on the proposed process for a mental health moratorium.
The consultation closes on 22 January 2024.
Dear IP 161 has been issued by the Insolvency Service. The issue contains details of information the Official Receiver can provide to IPs on bankruptcy and liquidation cases, as well as rules on the use of the Insolvency Service logo.
HMRC guidance: Using debt management schemes to restructure a company’s finances
HMRC has published guidance for IPs to help their clients restructure their company’s finances using a debt restructuring scheme, or plan under parts 26 or 26A of the Companies Act 2006.
Redundancy payments: Director's questionnaire
The Insolvency Service has published a questionnaire for directors who apply to the redundancy payments service (‘RPS’) for money they are owed. The questionnaire seeks additional information and evidence to help the RPS determine whether the director is entitled to any payments.
The RPS will contact directors when it needs a completed questionnaire.
Debt Relief Orders: Guidance for debt advisers
The Insolvency Service has updated its guidance on debt relief orders for debt advisers.
Information about mobile phone contracts and handsets has been updated to make guidance clearer around allowable expenses.
The Economic Crime and Corporate Transparency Act 2023 (Commencement No. 1) Regulations 2023
The above regulations were made and published on 13 November 2023.
These are the first commencement regulations made under the Economic Crime and Corporate Transparency Act 2023 (‘the Act’). They bring section 214 of the Act into force on 15 November 2023 and certain other provisions into force on 15 January 2024.
Money Laundering and Terrorist Financing (High-Risk Countries) (Amendment) (No.2) Regulations 2023
The above regulations came into force on 5 December 2023 and substitute the list of high-risk third countries specified in Schedule 3ZA of The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (‘MLRs’) with a new list.
The regulations add Bulgaria, Cameroon, Croatia, Nigeria, South Africa and Vietnam and remove Albania, Cayman Islands, Jordan and Panama from Schedule 3ZA.
Companies House Belfast office
Companies House in Belfast will not accept post or hand deliveries from 4 March 2024.
From that date all paper filings will need to be delivered by post to Companies House, Crown Way, Cardiff, CF14 3UZ. Office Holders operating in Northern Ireland will need to ensure that sufficient time is built in for the postal delivery of documents to meet statutory filing deadlines.
Register of persons holding a controlled interest in land toolkit
The Registers of Scotland has produced a toolkit which contains further information on the eegister of persons holding a controlled interest in land (RCI), including a suggested article for insertion into client newsletters.
Practice note: Qualifying floating charge holder – out of court appointments
The Judiciary of England and Wales has produced a practice note setting out the court’s approach to the verification process required following the filing of a notice to appoint an out of court administrator by a qualifying floating charge holder.
Sportsdirect.com Retail Limited for orders under Paragraphs 88 And 95(B) of Schedule B1 to the Insolvency Act 1986 to remove the Joint Administrators Of Goals Soccer Centres Plc: A note by Lord Braid setting out his reasoning for granting an application for the removal of the joint administrators.