COVID-19: Changes to Insolvency Regulations and support for IPs
A number of changes to insolvency Regulations have been put in place following the coronavirus pandemic. This page details the changes and includes related resources from HMRC.
Corporate Insolvency and Governance Act 2020
The Corporate Insolvency and Governance Act received Royal Assent on 26 June 2020. The measures are aimed at alleviating pressure on distressed businesses that perhaps weren’t distressed before the crisis hit. They include a new standalone moratorium option for companies in financial difficulty. The new rules give businesses a minimum of 20 days of protection from certain creditor actions, with an insolvency practitioner acting in the role of monitor.
Webinar: Corporate Insolvency and Governance Act 2020: A discussion of the insolvency aspects
Paul Bannister, Head of Policy at the Insolvency Service introduces the Act and explain some of the Policy intentions behind the measures that have been introduced.
Includes a Q&A session.
HMRC resources
- HMRC coronavirus guidance for insolvency practitioners
- HMRC: Introduction of electronic banking for Insolvency Practitioners making dividend payments
- HMRC Insolvency drop box bulletin
- HMRC Bulletin Aug 2020: Enforcement & Insolvency Services Edinburgh
HMRC moratorium information
HMRC is likely to be a significant creditor in most cases where a moratorium is sought and have set up a specific team to handle such cases.
Voluntary Arrangements — HMRC’s position going forward
This guidance explains HMRC’s approach to variations and new proposals in respect of Individual Voluntary Arrangements (IVAs), Partnership Voluntary Arrangements (PVAs) and Company Voluntary Arrangements (CVAs) from 1 July 2020 until 30 November 2020.
April 2020: Support measures during the coronavirus pandemic
Various measures to support Insolvency Practitioners during the Coronavirus outbreak have been introduced. The measures have been split into three sections, general, corporate insolvency and personal insolvency.