(22/01/2015)
Pensions, Sub-Contractors and Liquidations
The start of the new year brings new legislation relating to pensions and sub-contractors that your customers should be aware of. I will give you an overview of the updates in this month’s e-newsletter but if you think that you or any of your clients could be affected by any of these issues and one of our advisors will give you a call back.
Pensions and bankruptcy…What does the law say?
So, the changes to pension legislation relate to a decision made by the High Court in December 2014 not to follow the precedent of a decision made in an earlier case; Raithatha v Williamson [2012] EWHC 909. In “Raithatha” a decision was made that:
“If a bankrupt receives an income during his bankruptcy, his Trustee in Bankruptcy may apply to the court for an income payments order or “IPO” compelling the bankrupt pay a portion of his income to the Trustee in Bankruptcy for inclusion in his estate and for distribution to his creditors.”
In this case the High Court held that an un-drawn pension could in-fact be subject to an IPO and the Trustee could compel the bankrupt to draw down his pension. However, the change comes in the more recent case of Horton v Henry [2014] EWHC 4209 the High Court acknowledged that although this case could not be distinguished from “Raithatha” as the bankrupt had also elected not to draw down his pension, the High Court declined to follow the decision set.
If you have a client in a similar situation or are unsure as to what is the appropriate course of action to take in these circumstances contact us directly on 0871 222 8308.
A recent liquidation by Walsh Taylor
YMW 2014 Limited t/a Yorkshire’s Magical Winterland entered Liquidation this month, with Kate Breese of Walsh Taylor being appointed Liquidator. Her role will now be to realise the Company’s assets and conduct investigations into what went wrong, resulting in the Company’s insolvency. The company was forced to cease trading its Christmas attraction back in December following numerous complaints and negative feedback from customers with regard to the quality of the event, which quickly spread on social media.
With regard to the customers, stall holders and other creditors of the Company, Kate Breese has said “Unfortunately, on present information, the assets of the Company are insufficient to enable any distribution back to creditors”. She further advised any creditor who has not done so already, to contact their bank or card issuer to ascertain if monies lost can be recouped from that source. Walsh Taylor have been working with the card issuers since the attraction closed to assist as many people as possible to reclaim the funds lost as a result of the closure of the event.
If you do have any question please contact us via or on 0871 222 8308.
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