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Personal bankruptcy - new tax debt?

Is this a new or a discharged tax debt?

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Client has been invited by HMRC to register an interest in settling a film scheme case, which HMRC won in court.  Some years ago, but between making the investment and the court decision, the client was declared bankrupt.

I assume this debt wasn't included in the bankruptcy proceedings, otherwise HMRC's approach would make no sense.  I don't know what the status of the case was at that time, or whether the insolvency practitioner/receiver should have picked it up.  Would a settlement with HMRC now be a new, post-bankruptcy debt (and thus payable), if it relates to a liability pre-dating bankruptcy, even though it wasn't a known debt during those proceedings?

*Apologies for straying into Donald Rumsfeld "known unknown" territory here!*

This isn't my area but I want to direct the client towards getting the right advice. 


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30th Nov 2018 12:03

Not 100% sure but for an IVA, I was advised that if the client went into the IVA on say 1/12/X, then everything up to 5/4/X+1 was covered by the IVA and in the new tax year , a new UTR was provided for future taxes.
Sounds like it relates to old returns being amended?

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30th Nov 2018 12:10

I would think this was a contingent liability at the time of the BKY, (albeit the outcome was unknown at the time of the B/O) and would therefore rank as an unsecured liability in the Bankruptcy.

I would also think the fact that the 'debt' arose as a result of an event that occurred pre BKY action this also seems to imply it was a pre BKY debt.

If the debtor wants certainty they will need to instruct a specialist insolvency Solicitor. I can recommend one if needed.

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