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JGM
JGM, Solicitor
Category: Scots Law
Satisfied Customers: 11757
Experience:  30 years as a practising solicitor.
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What happens after sequestration in Scotland?, HMRC chasing

Resolved Question:

What happens after sequestration in Scotland?, HMRC chasing me for £55k but actual figure recieved from accountant today is £24,445. In court tomorrow, looking like sequestration will be awarded by sheriff, I've got £30k to hand to pay HMRC including interest and surcharges but they are still chasing £55k. Will I get the chance to pay before any of my assets are seized?
Submitted: 2 years ago.
Category: Scots Law
Expert:  JGM replied 2 years ago.
Thank you for your question.
The first thing is don't pay HMRC if they're going to move for sequestration anyway. There's no point.
You have to get your accountant to try to get them to look at the tax calculation and agree the calculated amount. It's unlikely that this will be done before the case calls and from what you say there has already been a continuation so you're unlikely to get another one.
Your solicitor should try for another continuation on the basis that there is now a tax calculation available. If the court won't allow this, the order will be granted and you would then have to try to get the sum agreed and seek a recall of the sequestration under section of the Bankrruptcy (Scotland) Act 1985.
I hope this helps. Please leave a positive response so that I am credited for my time.
Expert:  JGM replied 2 years ago.
Further to the above, note that a petition for recall has to be lodged within 10 weeks of the grant of sequestration. If it is not then it can still be lodged but you would have to show that you can pay off or secure all your debts, not just the one to HMRC. See sections 16 and 17 of the 1985 Act.
JGM and other Scots Law Specialists are ready to help you
Customer: replied 2 years ago.
Many thanks for that, I will just have to hope and pray that my stand in solicitor can convince the court to extend for a few days so HMRC has time to digest the real accounts.
Expert:  JGM replied 2 years ago.
You're welcome.