Changes to the Insolvency Service Account for voluntary liquidations
Published 7 April 2014
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This publication is available at https://www.gov.uk/government/publications/changes-to-insolvency-service-accounts-for-voluntary-liquidation/changes-to-the-insolvency-service-account-for-voluntary-liquidations
As of 1 October 2011 the Insolvency Service Account (ISA) will no longer be available in voluntary liquidation cases. The Insolvency Service is currently making the necessary arrangements for secondary legislation to be laid in parliament to enable the withdrawal to come into force on that date.
This means that after 30 September 2011 no new ISA accounts will be opened in voluntary liquidations. However, any accounts existing as at 1 October 2011 can continue in use until the case is concluded or the account is closed for any other reason.
The decision was made following a consultation exercise which ended on 17 December 2010. A summary of the responses was published on 1 June 2011. The Insolvency Service considered the responses together with the continued decline in the number of voluntary liquidation ISA estates and concluded that there is no longer a case for maintaining the service.
Since the service could only be continued at a financial loss, the principal alternative to closure would have been substantial increases to account fees and charges, the effect of which would have been to accelerate the decline in usage still further. In addition, as the Insolvency Service is required meet the cost of providing such services from its income, continuing to generate a deficit and funding this from the taxpayer is not a viable alternative.
Please call 0121 698 4268 or email: [email protected] if you have any queries about this change.
Published: September 2011