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Exemption applies to certain insolvencies

13 March 2012
Issue: 4345 / Categories: News
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.

Issue: 4345 / Categories: News
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