Restructuring tax support for Insolvency Practitioners

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Restructuring tax for Insolvency Practitioners

Our Restructuring Tax Team have both the corporate tax and insolvency knowledge and specialism expertise to provide appropriate tax support and advice to corporates in distress or during a formal insolvency appointment and also ensure that all corporate tax compliance matters are handled in both a practical and efficient matter.

We recognise that the tax issues that may arise in respect of a company in financial distress are numerous, wide-ranging, and of varying levels of complexity.

Therefore, we understand the importance of having a detailed understanding of the interaction between insolvency legislation, tax legislation, and the commercial background of a particular case, as this can be critical in achieving an efficient and effective tax outcome, especially when decisions (and not just actions!) taken by an Insolvency Practitioner can have significant tax implications.

Why is insolvency tax important

As you will be aware, corporate tax is an expense in both administrations and liquidations. As such, having an awareness of the tax risks and opportunities on a case from the offset is key to ensuring that the affairs of a particular case are undertaken in a tax-efficient manner.

How we help

Mazars have a specialist team, experienced in both insolvency and tax matters, able to provide support to Insolvency Practitioners to help ensure that they are able to manage the necessary compliance requirements, claim commercially, minimise tax expenses and ultimately help secure a greater return for creditors.

We can assist in a number of different areas

Tax Housekeeping
  • Provision of an initial review highlighting filing responsibilities and deadlines;
  • Efficiently agreeing outstanding pre-appointment periods with due consideration to the wider tax implications on a case;
  • Disclosure of trading periods within an Administration and other post-appointment returns; and
  • Obtaining the relevant clearances from HMRC.
Tax losses 
  • Disclosure of loss calculations to HMRC in an agreeable format;
  • Preparation of efficient (and full supported) loss carry back claims; and
  • Management of tax loss utilisation within a fractious group.
Sales structuring
  • Consideration of tax-efficient sale structuring to help minimise liabilities or increase realisations.
HMRC enquiries/investigations
  • Provision of technical support and advice with regards to HMRC correspondence and your obligations; and
  • Provision of specialist input to allow for the agreement of acceptable HMRC claims. 
Recovery from legal proceedings 
  • Analysis of a claim/settlement agreement from a tax perspective;
  • Consideration of the various reliefs and losses available in this complicated area; and
Chargeable gains support
  • Disclosure of disposal and supporting calculations to HMRC;
  • Provision of tax support to ensure that the sale is structured tax efficiently utilising available losses and reliefs; and 
  • Assessment of the deductibility of expenses associated with the disposal

Get in touch

If you would like to speak with a member of our Restructuring Tax Services team, please complete the following contact form.

Contact us today