From 1 December 2020, the priority rules on insolvency have changed, impacting the recovery that can be achieved from holders of a floating charge on the insolvency of a debtor. The new rules give HMRC priority over floating charge holders and ordinary unsecured creditors in relation to taxes collected by the insolvent company for HMRC.
Legal Insights & Industry Updates
Life, business and the law
The law never stands still, and the way it applies to you and your organisation is constantly evolving. Our people are on top of these developments and can keep you up to date with some of the most interesting aspects of these changes. Check out our articles and updates for our perspective on issues that might affect you.
Latest Insolvency articles
In an apparent U-turn on the CIGA Extension Regulations, new regulations came into force on 26 November, reintroducing the suspension of wrongful trading. This will mean that, with effect from 26 November 2020 and until 30 April 2021, administrators and liquidators will be unable to raise claims for wrongful trading against the directors of any insolvent company in respect of any of the company's losses or its creditors' losses which arose directly as a result of continued trading during this second period of suspension.
For employers who are considering making employees redundant or carrying out an organisational restructure, it is important that steps are taken to ensure that their employees are treated fairly and lawfully throughout.
The Corporate Insolvency and Governance Act 2020 which received Royal Assent on 25 June 2020 contains far-reaching permanent reforms of UK insolvency law as well as temporary measures introduced as a result of the Covid-19 pandemic.
Where a company owns significant assets, such as property, cash, etc., these assets could be at risk should the company encounter financial issues. In advance of such issues arising, many companies guard against the risk of losing assets by adopting asset protection strategies.