R (on the application of Palmer) (Appellant) v Northern Derbyshire Magistrates’ Court and another (Respondents) [2023] UKSC 38

On appeal from: [2021] EWHC 3013

Now that HMRC has become a preferential creditor for certain debts, other creditors – such as suppliers – could lose out.

Under the Finance Act 2020, from 1 December 2020, HMRC became a preferential creditor in insolvency proceedings. This may have significant impact on what’s left for other creditors.

The Corporate Insolvency and Governance Act (CIGA) came into force on 26 June 2020, introducing significant reforms intended to provide breathing space for companies during the coronavirus pandemic.

These measures may be a welcome relief to some struggling companies. However, they could prove problematic for suppliers, who will need to tread especially carefully when dealing with distressed or insolvent companies.

What has CIGA changed?

No passado dia 1 de julho de 2017 entrou em vigor o Decreto-lei 79/2017 de 30 de junho de 2017 (“DL 79/2017”), que altera, entre outros, o Código da Insolvência e da Recuperação de Empresas, alterando, nomeadamente, o regime jurídico do Procedimento Especial de Revitalização (“PER”) que fica agora reservado a empresas.

Destacamos ainda outras alterações relevantes introduzidas pelo DL 79/2017: 

On 1 July 2017, Decree-law 79/2017, of 30 June 2017 (“DL 79/2017”), entered into force. This piece of legislation amends, most notably, the Insolvency and Recovery of Companies Code and the legal framework of the Special Revitalization Procedure (“SRP”), which is now reserved only to companies.

Other noteworthy amendments introduced by DL 79/2017 are as follows: