Kirkland Alert

Finance Act 2020: Two Important Reforms for the UK Restructuring / Insolvency Market

At a Glance

The Finance Act 2020 received Royal Assent on 22 July, meaning that:

  • HMRC will rank as a preferential creditor in respect of certain taxes, in insolvency proceedings commencing from 1 December 2020 — strengthening HMRC’s position at the expense of other creditors; and
  • Directors risk potential personal liability for taxes in certain “tax abuse” cases involving insolvency or potential insolvency.

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