End of temporary insolvency restriction measures

The Insolvency Service has announced that the 1st October 2021 will mark the end of restrictions on winding up petitions introduced in June 2020 by the Corporate Governance and Insolvency Act 2020.

The measures were intended to provide struggling companies with a respite from cash-flow problems contributed to or caused by the Covid-19 pandemic.

The announcement included temporary measures which the Insolvency Service said were intended to support small businesses as they rebuild their financial position with a particular focus on the retail, hospitality and leisure sectors, namely;

The debt threshold for issuing a winding-up petition is being raised from £750 to £10,000.
The introduction of a 21-day window to allow debtors to present repayment proposals before a creditor can seek to present the petition

However, the existing restrictions will remain on commercial landlords from presenting winding-up petitions against limited companies to repay commercial rent arrears built up during the pandemic.

These amendments will remain in place until 31 March 2022.

Please see the announcement: End of temporary insolvency measures - GOV.UK

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