UK and International Tax news

Paymex VAT Case Update

Thursday 8th March 2012

In September 2011 HMRC published their Brief 35/11 which dealt with the insolvency implications of the VAT Tribunal decision in the case of Paymex Limited.  They have subsequently undertaken a review of all insolvency processes in light of the Paymex ruling, and, following completion of this review, have issued Brief 03/12 in which they confirm their view that the VAT exemption arising from the Paymex ruling applies to:

 ·    Individual voluntary arrangements

·    Company voluntary arrangements

·    Partnership voluntary arrangements

·    Protected trust deeds (applicable only in Scotland)

Insolvency practitioner services in all other insolvency processes remain liable for VAT at the standard rate.

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