Follow-up to RCB 35/11
Following publication of Revenue & Customs Brief (RCB) 35/11, which deals with the insolvency implications of the First-tier Tribunal decision in Paymex Ltd, HMRC have undertaken a review of all insolvency processes, to provide certainty to the insolvency profession as to where the exemption applies.
Following completion of this review, HMRC have published RCB 3/12 in which they explain that the VAT exemption arising from the Paymex ruling will apply in the following cases:
- individual voluntary arrangements;
- company voluntary arrangements;
- partnership voluntary arrangements;
- protected trust deeds (applicable only in Scotland).
Insolvency practitioner services in all other insolvency processes remain liable for VAT at the standard rate.
