Purnells News & Blog

Phoenix Companies and Statement of Insolvency Practice 13 (“SIP 13”)

Phoenix Companies and Statement of Insolvency Practice 13 (“SIP 13”)

With a revised Statement of Insolvency Practice Number 13 (“SIP 13”) becoming effective on the 30 April 2021, it is a good time to review the topic of phoenix companies as SIP 13 deals with the disposal of assets to connected parties.

Posted: 14/04/2021

Pre-Packaged Administration Reforms

Pre-Packaged Administration Reforms

On 8 October 2020, the Government published its report to improve the transparency of pre-pack sales in administrations. This report was accompanied by a set of draft regulations to increase independent scrutiny of sales to connected parties.

Posted: 03/03/2021

How and Why to place a Company into Members Voluntary Liquidation ("MVL")

How and Why to place a Company into Members Voluntary Liquidation ("MVL")

A Members Voluntary Liquidation, or MVL, is an insolvency process for solvent companies, where all creditors will be paid in full and the surplus assets are distributed to the shareholders, often with advantageous tax benefits.

With the Chancellor looking at ways to raise taxes due to the Coronavirus Pandemic, many directors and shareholders of owner managed businesses are taking the view that it is better to get their hard-earned funds out of their businesses before any changes, and potential increases in tax, are made.

Posted: 02/02/2021

Insolvency: Who Gets Paid First?

Insolvency: Who Gets Paid First?

In Insolvency proceedings there is a set hierarchy to be followed when paying out dividends to the various classes of creditors...

Posted: 19/01/2021

Employee Claims In Insolvency

Employee Claims In Insolvency

Unfortunately when a Company finds itself in an insolvent situation, it generally means that its employees will be dismissed without them being paid everything that they are entitled to.

Posted: 11/12/2020

Pre-Pack Reforms

Pre-Pack Reforms

The Government has recently announced that new reforms are to be made in respect of pre-packaged sale agreements in Administrations, which are often called “Pre-Packs”.

Posted: 23/11/2020

The R3 Standard Form for COVID-19 Company Voluntary Arrangements (“CVA’s”)

The R3 Standard Form for COVID-19 Company Voluntary Arrangements (“CVA’s”)

The Association of Business Recovery Professionals (“R3”) has recently released a standard form for a Covid-19 Company Voluntary Arrangement (“CVA”) Proposal together with a set of accompanying Covid-19 Standard Conditions.

Posted: 17/11/2020

Coronavirus (COVID-19) Guidance for Protocol IVA’s

Coronavirus (COVID-19) Guidance for Protocol IVA’s

The Government has recently released guidance on how Individual Voluntary Arrangements (“IVA's”) should be handled during the Coronavirus (COVID-19) pandemic so as to provide options to consumers who are struggling to adhere to the terms of their arrangements.

Posted: 28/09/2020

Finance Act 2020

Finance Act 2020

With so many more important things going on with the Coronavirus Pandemic it may have been missed that the Finance Act 2020 received Royal Assent on 22 July 2020.

Posted: 07/09/2020

HMRC Releases New Guidance on Tax Debts

HMRC Releases New Guidance on Tax Debts

On the 13 August 2020 HMRC issued new guidance on how they treat customers with a tax debt...

Posted: 28/08/2020

New Insolvency Moratorium Procedure

New Insolvency Moratorium Procedure

The purpose of this blog is to give a brief overview of the new Moratorium procedure.

Posted: 03/07/2020

New Procedures & Measures are Coming...

New Procedures & Measures are Coming...

The Corporate Insolvency and Governance Act 2020 received Royal Assent last night and came into force at midnight.

Posted: 26/06/2020