Consultation outcome

Protecting your taxes in insolvency

• From: HM Revenue & Customs
• Published: 26 February 2019
• Last updated: 11 July 2019 — See all updates

This consultation has concluded

Read the full outcome

Protecting your taxes in insolvency - summary of responses

PDF, 554 KB, 13 pages

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Detail of outcome

This consultation followed the announcement at Budget 2018 that the government will introduce legislation in the Finance Bill 2019 to 2020 to make HM Revenue and Customs a secondary preferential creditor for certain tax debts.

You can read a summary of responses and the government response to the consultation on this page.

Following this consultation, the government has published draft legislation, an explanatory note and a tax information and impact note (TIIN).

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Original consultation

Summary

The consultation outlines how HMRC’s new status will differ from existing rules when a business goes into insolvency.

This consultation ran from
9:30am on 26 February 2019 to 11:45pm on 27 May 2019

Consultation description

At Budget 2018, the government announced that it will introduce legislation in Finance Bill 2019 to 2020 to make HM Revenue and Customs (HMRC) a secondary preferential creditor for certain tax debts paid by employees and customers on the insolvency of a business.

This consultation invites comments on how HMRC proposes to implement the change.

We’re seeking views from interested parties, particularly businesses, lenders, insolvency practitioners, advisers and representative bodies and others who will be affected by the change, to ensure that it is implemented in the most effective way.

Documents

Protecting your taxes in insolvency

PDF, 441 KB, 16 pages

This file may not be suitable for users of assistive technology.

Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Published 26 February 2019
Last updated 11 July 2019 + show all updates

1. 11 July 2019

   Added outcome summary, summary of responses and link to draft legislation.

2. 26 February 2019

   First published.