Settlement by agreement: means to fund the offer: actual or imminent insolvency
When a company is in, or about to be in liquidation or receivership, and when an individual is bankrupt or subject to an IVA (voluntary arrangement) or facing those as likely prospects, it is essential for the Investigator to consult EM6230 and seek advice from Insolvency and Securities where appropriate - see SIOG5300.
It is even more necessary for the Investigator to get advice when there is a concern that a taxpayer is divesting him/herself of assets in favour of relatives.
No attempt should be made to negotiate a contract offer without proper advice. Not only may HMRC’s interests be compromised but the attempt at a contract offer may represent an act of preference to the detriment of other creditors.