Court of Appeal denies input tax on accountancy services relating to arefinancing and restructuring process: Airtours Holiday Transport Limited vHMRC5

Historically, HMRC has allowed insolvency practitioners to, at an early stage following their
appointment, cancel the VAT registration of the insolvent business. Practitioners have then been 
entitled to account for VAT on any subsequent supplies using HMRC’s form VAT 833 (Statement of 
Value Added Tax on goods sold in satisfaction of a debt).

Automotive sales in North America continue to climb, and many suppliers are prospering. However, there are some companies who are struggling and who may face bankruptcy. We have seen companies such as A123 Systems and certain subsidiaries of Revstone Industries recently file for protection under the Bankruptcy Code. How can a supplier to a troubled company protect itself? Must a supplier continue to supply on credit terms? The Uniform Commercial Code may assist such a supplier in this situation.

Those thinking that the trials and tribulations of the recession may have passed them by and that, if all else failed, at least the pension was safe, may have to think again following two recent court decisions in which pensions came under attack from creditors and trustees in bankruptcy.

The vexed question of whether a future right to receive a pension can be attached to satisfy a judgment, or can be claimed by a trustee in bankruptcy, has long since troubled the courts.