Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Incorporated company definition

What does Incorporated company mean? In practice, an incorporated company is a business vehicle formed and registered under the Companies Acts, creating a separate person at law distinct from its members. In the UK (England & Wales, Scotland and Northern Ireland) this follows registration under the Companies Act 2006 at Companies House; in Ireland, under the Companies Act 2014 at the Companies Registration Office. The expression is descriptive; its legal effects arise from statute and case law on separate legal personality and the corporate veil. - The company, not its shareholders, owns assets, incurs liabilities, enters contracts and can sue and be sued. - It has perpetual...

Tax consequences of administration: priority of liabilities, accounting periods and losses, beneficial ownership, group relief, administrators’ personal risks, PAYE/NICs, statutory interest and HMRC’s stance on restructuring plans

Published by a LexisNexis Tax expert

Practice notes

This Practice Note outlines:

the principal corporation tax consequences when a UK‑incorporated company enters administration in the UK; and
certain other tax considerations that may arise during the course of the administration

Administration is a highly adaptable procedure and has become a popular means of addressing, and in many instances rescuing, insolvent businesses. It provides breathing space to enable a rescue or a restructure, or to achieve a better outcome for all creditors than would be possible on liquidation. Administration is an entirely statutory process.

When reforms were introduced by the Enterprise Act 2002 (EnA 2002), inserting Schedule B1 into the insolvency Act 1986 (ia 1986) for administration, HMRC also brought in specific tax rules to cover certain matters, although these are not comprehensive.

For fuller discussion of the administration process, see: Administration—overview and, below: What is an administration and what is its purpose?

From a tax perspective, the implications of administration can be far‑reaching, and without careful consideration there are several areas that could lead to unexpected and, at times, unnecessary tax liabilities...

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Web page updated on 22/05/2026

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