HMRC has issued a revised Notice 700/56: Insolvency (April 2014). The notice explains the basic principles of HMRC’s treatment of insolvent businesses and the procedures which insolvency practitioners are asked to follow when dealing with HMRC.
Although the notice details VAT procedures, it can be applied to cases where traders are involved in another indirect tax or duty administered by HMRC.
The notice clarifies that VAT on realisation of taxable stocks and assets remaining at the date of insolvency should normally be accounted for on post-appointment VAT returns.
Details of the requirements of Law of Property Act (LPA) receivers, when accounting for VAT, are also included. This notice cancels and replaces the September 2013 version.
The notice is available at http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000122&propertyType=document