The Finance Act 2020 received Royal Assent on the 22 July, confirming the government’s intention to restore HMRC as a secondary preferential creditor on insolvency.
From 1 December 2020 HMRC’s claim will sit ahead of floating charge holders and unsecured creditors reducing the monies available for other creditors in an insolvency .
HMRC’s claim is limited to claims for unpaid employer NIC, PAYE and VAT. Those claims will often be substantial and with the additional COVID-19 impact will have a material effect upon distributions.
In the short term lenders of all denominations will be more cautious in the lending considerations
