PracticeConsultingNews extra: The Insolvency shake-up

News extra: The Insolvency shake-up

Gordon Brown shocked the insolvency world this week by announcing proposals to abolish both Crown preferential treatment and administrative receivership.

The radical shake-up of insolvency law was announced on Monday as part of a wider of package reforms outlined in the chancellor’s ‘Enterprise for All’ document.

‘It’s quite a shock,’ said Simon Freakly, head of Kroll Buchler Philips. ‘We all knew the government was thinking about these issues but there was no indication Brown was going say this.’

In a move welcomed by insolvency practitioners, Brown said the government would remove crown preferential treatment, a procedure that puts the Inland Revenue and Customs & Excise at the top of the list of creditors when companies crash. But they were more cautious about proposals to ensure collective procedures are used instead of administrative receivership.

To read more about the decision to abolish crown preference, click here.

Find out about the government’s proposals to restrict or abolish administrative receivership, click here.

Read about R3’s views on the bankruptcy reforms by clicking here.

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

3m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

9m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

10m Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

11m Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

11m Stephanie Wix, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

10m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

10m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

10m Kevin Reed, Writer