Budget follow-up: Insolvency rules to change
The government has announced it will change the tax rules governing insolvency procedures.
Link: Budget special
In an announcement following this year?s Budget, the Inland Revenue said it was changing the accounting periods for companies in liquidation and administration.
Under the new rules the administrators will now be able to calculate tax liabilities based on the previous year’s tax rates. According to the Revenue, the new measures are designed to speed up the process of administration
Companies in administration will no longer continue their accounting period as normal. Instead, they will have to change the periods, to begin when the insolvency procedure starts.
The rules are likely to affect companies in liquidation and administration and will apply when the new rules of the Enterprise Act come into play.