HMRC, Insolvency and Post-Budget Preferential Status

Following the Enterprise Act 2002, the preferential status which HMRC had enjoyed in an insolvency was abolished, rendering HMRC the same as any other unsecured creditor. The effect of this was to swell the pot of assets available to be applied to all unsecured creditor claims.

Philip Hammond announced in Monday’s budget that HMRC’s preferential status is to be restored. What does this mean for HMRC and unsecured creditors?

The Budget provided that:

Filed under:
United Kingdom, Insolvency & Restructuring, Tax, Squire Patton Boggs, EU VAT, HM Revenue and Customs (UK), Enterprise Act 2002 (UK), Chancellor of the Exchequer
Authors:
Rachael Markham
Location:
United Kingdom
Firm:
Squire Patton Boggs