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VAT and insolvency services: HMRC guidance

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HMRC has reviewed all insolvency processes in the light of the tribunal ruling in Paymex Ltd v HMRC TC 1210, and considers that the VAT exemption held to apply in that case applies to individual voluntary arrangements; company voluntary arrangements; partnership voluntary arrangements; and protected trust deeds in Scotland.

Insolvency practitioner services in all other insolvency processes remain liable for VAT at the standard rate, HMRC said in Revenue & Customs Brief 03/12.