Nathan Langford
Nathan advises on a range of domestic and cross-border tax issues arising in a range of contexts, including private equity and general corporate M&A transactions, fund formations and leveraged financings, but with a particular focus on issues arising in the context of insolvencies and business restructurings. He also has experience of advising on structured financing arrangements and tax litigation.
Practice Area
Panel
- Contributing Author
1 Contributions by Nathan Langford
PRACTICE NOTES
HMRC joint and several liability notices under Finance Act 2020: directors, participators and LLP members—tax avoidance/evasion, facilitation, phoenixism and coronavirus support clawback; commencement, scope, reviews and appeals
Joint and several liability notices under the Finance Act 2020
The Finance Act 2020 (FA 2020) introduced powers enabling HMRC, in specified insolvency-related circumstances, to hold certain individuals personally responsible for tax debts or particular tax penalties owed by companies or LLPs, on a joint and several basis, by issuing a joint and several liability notice (JSLN). Those potentially caught include:
directors, shadow directors and other individuals involved in managing a company
participators in a company
members or shadow members of a limited liability partnership (LLP)
These measures were developed as part of efforts aimed at ‘tackling the small minority of taxpayers who deliberately abuse the insolvency regime in trying to avoid or evade their tax liabilities, including through the use of phoenixism.’ HMRC’s guidance summarising the JSLN provisions reflects this, while emphasising the legislation’s deterrent effect: ‘The aim of the legislation is to deter individuals from using insolvency as a way of getting out of paying their tax liability.’ The regime operates by heightening the negative consequences for individuals performing a management function in relation to a company or LLP, where that entity is engaging in particular categories of ‘bad’ behaviour, and...
Tax
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