LEXLAW Solicitors & BarristersThis is Categories of News
We successfully annulled a bankruptcy order against our client after HMRC failed to properly serve notice of a key hearing. Mr. Gaster proved this procedural error denied him the chance to present evidence of his ability to pay. The court’s judgment emphasized due process under Rule 10.23 of the Insolvency Rules 2016, exposing flaws in HMRC’s conduct and evidence on the adjournment notice.
Funding Circle personal guarantees are under legal scrutiny, with a High Court case questioning their enforceability. Many business owners face enforcement actions following loan transfers to Azzurro Associates. This article explores the implications, risks, and potential legal defences available to guarantors.
In Purkiss v Kennedy, the High Court rejected a liquidator’s attempt to recover unpaid PAYE and NICs from Ethos Solutions Ltd’s failed tax avoidance scheme. The court found no fraudulent intent to evade HMRC under Insolvency Act 1986, Section 423. This case highlights HMRC’s challenges in tax recovery via insolvency law and the need to prove intent.
Compulsory mediation is now mandatory for small claims under £10,000. Our litigation specialists are masters of ADR and regularly help clients navigate mediation in England & Wales.
HMRC’s use of Account Freezing Orders has risen 170% over the past 3 years. An AFO allows HMRC to quickly freeze funds in accounts suspected of criminal activity for up to two years. The number of AFOs, easily obtained by HMRC, has surged from 125 in 2022 to 341 in 2024, with the value of frozen assets rising massively. AFOs pose catastrophic risks for innocent businesses caught up in HMRC’s net.
In addressing the challenge of stalled litigation, the Civil Procedure Rules provide an extensive legal framework designed to facilitate swift and just resolution of cases. Central to this framework is the overriding objective of the CPR, which mandates that cases should be handled justly and at proportionate cost.
We successfully represented a client in a significant cryptocurrency loan dispute. On 2 July 2024, the High Court handed down a judgment varying the valuation date for assessing damages in lieu of specific performance. Initially, the County Court had set the valuation date at the breach in 2019, which did not account for the significant increase in Ethereum’s value.
An Account Freezing Order (AFO) is a UK court order that restricts access to funds in bank accounts suspected of involvement in criminal activity. Certain organisations such as the NCA, SFO or HMRC must show reasonable suspicion that the money is linked to criminal activity. They can apply for an AFO at a Magistrates’ Court. These orders, lasting up to two years, freeze the account, preventing any transactions without court approval. To protect their legal rights and assets, businesses and individuals facing an AFO can challenge or seek variation through legal representation.
Former tennis champion Boris Becker was sentenced to two and a half years in prison after being found guilty of four charges under the Insolvency Act, 1986. Becker has now been discharged and is no longer Bankrupt.
UK financial institutions have been selling interest rate swaps and fixed-rate loans without fully disclosing the risks and contingent liabilities involved, leading to substantial liabilities for customers. Lexlaw, a law firm specialising in hidden derivatives litigation, advises on legal action for SMEs and individuals affected by mis-selling. They guide clients through obtaining redress, often achieving out-of-court settlements with banks and insurers eager to avoid precedent-setting judgments. Lexlaw provides a step-by-step guide for those suspecting they’ve been mis-sold financial products, encouraging prompt legal advice to meet claim deadlines.