HC Deb 07 March 1986 vol 93 cc284-5W
Mr. Robert B. Jones

asked the Chancellor of the Exchequer when the provisions for extended relief from value added tax on bad debts arrangements introduced by the Finance Act 1985 will be brought into operation; and whether they will apply to any existing receiverships.

Mr. Brooke

A Treasury commencement order has been made and Value Added Tax (Bad Debt Relief) Regulations are being laid today before the House to bring the provisions of section 32 of the Finance Act 1985 into operation from 1 April next. The legal provisions will apply only where the debtor becomes insolvent on or after 1 April. Customs and Excise will, however, allow relief as an extra-statutory class concession where, on that date, the debtor is already in receivership provided that the receiver is able to issue a certificate that the assets of the company would be insufficient, on liquidation, to cover the payment of a dividend to the ordinary unsecured creditors. Concessionary relief will also be allowed in similar circumstances in Northern Ireland pending the introduction of equivalent legislation for the Province.

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