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A7.460 Winding-up petitions for bodies promoting or enabling tax avoidance

Under FA 2022, s 85, HMRC has the power to present winding-up petitions to the Court for bodies operating against the public interest.

HMRC can petition the Court to wind-up any 'relevant body' involved in promoting or enabling tax avoidance and operating against the public interest on or after 24 February 2022. Any information, non-compliant behaviour or ongoing action by HMRC or any other organisation prior to 24 February 2022 will be taken into account by the Courts in considering the winding-up petition.¹

Prior to 24 February 2022, HMRC could only take action against a promoter under insolvency legislation where there was a tax debt. For details of HMRC's use of this insolvency as a debt collection measure, see the GOV.UK website ('What will happen if you do not pay your tax bill') and DMBM685000.

However, there was already insolvency legislation under which the relevant Secretary of State could petition the Court to wind-up a company if it was expedient in the public