The Return of Crown Preference — Implications for Borrowers and Lenders
By EsqSocial Corporation 16/12/20
The first day of December witnessed an early visit from the ghost of Christmas past for the rules relating to the order of priority on insolvency. For insolvencies commenced on or after 1 December 2020, Her Majesty’s Revenue and Customs (HMRC) will once again rank as a preferential creditor in respect of certain tax liabilities, irrespective of the date that the tax debts were incurred. This marks a return (albeit not quite on the same terms) to the position prior to 2002 for HMRC, when it...
By: Faegre Drinker Biddle & Reath LLP