.png)
.png)
Road to insolvency
Key points
- An insolvency practitioner may take over control of an insolvent company (following IA 1986).
- The concept of piercing or lifting the corporate veil.
- HMRC is often the largest creditor in an insolvency.
- The Supreme Court decision in Rangers and EBT tax avoidance schemes.
- HMRC has reacquired its preferential status giving it preferential treatment in recovering taxes.
- Directors can be held personally responsible for wrongful trading and taxes due.
Insolvency is a state of being unable to discharge debts when they fall due. There are two notable thresholds broadcast in the Insolvency Act 1986 (IA 1986) s 123. If a company satisfies either then it is deemed to be insolvent.
The cashflow test arises from consideration as to whether the client company is able to pay its debts when they fall due. If it cannot do so the company is insolvent. An insolvency practitioner investigating a company’s...
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
