Protecting your Taxes in Insolvency:
HMRC Consultation Response by the Commercial Finance Association (Europe)
In February 2019, the UK’s HM Revenue & Customs published a consultation paper “Protecting your Taxes in Insolvency”. Should this proposal go ahead there would be an adverse effect on existing lending (where Lenders are relying on a floating charge), which in turn is at loggerheads with new enterprise and future investment in the UK economy.
Given the detrimental impact this would have on the business endeavours of CFA members and the wider ABL community, members of the CFA Europe Steering Committee and other industry leaders met with HMRC to express their concerns and lobby HMRC in objection to the measures proposed. Subsequent meetings took place with R3, UK Finance and other parties to discuss what efforts we can undertake to show the very negative effect of these proposals.
Last week, CFA Europe submitted a formal response to HMRC, which you can read here. We encourage you to read the response and share with your colleagues and networks in order to strengthen our lobbying efforts.