www.bifa.org


Policy & Compliance


been able to seek the opinion of a pre-pack pool of experts, but the option was little used. This new legislation will offer greater transparency to creditors and individuals with insolvency experience who could be identified as credible evaluators.


Previous rules Previous rules placed the onus very much on insolvency practitioners to demonstrate to creditors that fair value had been obtained from the assets, which were allowed to be sold immediately upon appointment. This type of sale to a connected party, with no post-insolvency marketing, had been criticised by creditors in the past as lacking in transparency, particularly in instances when the same directors (connected parties) were immediately involved in the new company following a transfer of assets. In addition to this change, directors are facing further pressures from new legislation introduced at the end of 2020, which gives HMRC the ability in certain circumstances to pursue directors personally on a joint and several basis for debts due where the directors have been involved in two or more ‘phoenix’ type arrangements over a five-year period.


Harder line There have been no publicised recovery actions to date, but the new legislation signifies a harder line being taken by HMRC on parties who have repeatedly ‘phoenixed’ businesses to the detriment of creditors. BIFA Members concerned about these new rules and seeking guidance on whether or not they may be personally liable should seek professional advice sooner rather than later, ensuring the correct decisions are being made now so as not to impact both financially and reputationally.


BIFAlink


WAY OF


THE ROSES 23 - 26 September 2021


Get back on your bike and join us for a coast to coast adventure through Lancashire and Yorkshire


transaid.org  registered charity no. 1072105


£3000


Increased incentive payments for hiring new apprentices


Employers will receive £3,000 for new apprentices of any age who join their organisation from 1 April 2021 to 30 September 2021.


For further information about recruiting an apprentice visit apprentices.bifa.org


July 2021 17


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