The draft Finance Bill 2019–20 clauses published on 11 July 2019 include two measures to help HMRC collect more money from insolvent businesses. Firstly, there are calls for HMRC to become a secondary preferential creditor in relation to taxes held temporarily by businesses which become insolvent. The second measure is aimed at companies and limited liability partnerships (LLPs) attempting to misuse insolvency to avoid paying tax, by making directors and others connected to the business jointly and severally liable for certain liabilities.

As with the other draft clauses for Finance Bill 2019–20, HMRC’s consultation on the draft legislation closes on 5 September 2019.