ECL41000 - ECL during insolvency

This part of the guidance covers the situation when a person liable to pay the levy

(a) who is an individual—

(i) has died or become incapacitated; or

(ii) has become bankrupt; or

(b) is subject to winding-up, receivership, administration, or an equivalent procedure.

The person who—

(a) in the case of an individual, carries on the regulated business([ECL12200]) on behalf of an individual who has died or become incapacitated; or

(b) acts as the liquidator, receiver or administrator in relation to the business of the person liable to pay the levy or acts in an equivalent capacity,

may be treated by HMRC as the person liable to pay the levy and must satisfy the statutory requirements.

Any amount of levy which relates to UK revenue attributable to a period before the date when the winding-up, receivership, administration or other equivalent procedure takes effect is payable by the person subject to the winding-up, receivership, administration, or an equivalent procedure.

Any amount of levy which relates to UK revenue attributable to a period on or after the date when the winding-up, receivership, administration or other equivalent procedure takes effect is to be regarded as an expense of that winding-up, receivership, administration, or equivalent procedure.

To find out more about insolvency procedures, offences and alternative actions refer to the Insolvency Library and if you require any further information you should in the first instance, contact your local insolvency contact shown in the insolvency profession organisation and contact app.