Portsmouth see off HMRC’s CVA appeal

Portsmouth Football Club have fended off the taxman’s appeal against its CVA.

The appeal was heard this afternoon in London’s High Court. Judge Justice
Mann said that on five heads of attack, HM Revenue & Customs failed to prove
unfair prejudice.

Peter Kubik, UHY Hacker Young partner and joint administrator of Portsmouth,
told Accountancy Age after the hearing that he was “very pleased” with the
decision, “but there is still lots of work to do”.

Justice Mann said the hearing was not the appropriate place to decide on
whether the football creditor rule, where football creditors rank above HMRC in
likelihood of repayment in an insolvency, should be revised.

More to follow.

Further reading:

League defends preferential insolvency rule

fights for full voting rights at Portsmouth

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