Insolvency investigation

12 October 2010

Issue: 4276 / Categories: Forum & Feedback , Capital Gains , Income Tax

Some years ago, a company was dissolved and its director was made bankrupt. However, the director owed the company £75,000 and HMRC contend that there is a liability under TA 1988, s 421 for 2009/10

I have been approached by an individual who wishes me to act for him generally regarding his taxation matters but is specifically concerned about a letter he has received from HMRC’s specialist investigations office suggesting that he has a liability arising in accordance with TA 1988 s 421.

This situation revolves around a company of which my client was a director but from which he resigned owing it £75 000. It seems that some months after his resignation the company was dissolved.

Apparently this did not involve a formal winding-up or indeed a formal application for dissolution but came about simply as a result of the company being removed from the register of companies for failing to comply with certain statutory filing requirements.

The events above took place in the 2006/07 and 2007/08 tax years but the liability...

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