I am dealing with a situation in which a company has attempted liquidation and in doing so requires the repayment of tax liability amounting from the use of EBTs.
The issue is that of the 3 former directors, one (who held 1/3 shares) at the time during which the EBTs were taken has died. He was not involved in the settlement process before death.
HRMC, through the insolvency practice, are requesting that the two living former directors (as well as the current directors - who were not directors at the time of the EBTs) clear the company's debts and therefore repay the tax liability owed not only for themselves but additionally for the deceased former director. This will mean an individual tax bill per former living director, as they are considered to be responsible for the EBTs taken during their directorship. We assume that the estate of the deceased former director is unable to repay his share. They have not been contacted.
Any help would be highly appreciated.