VPDS186000 | Vaping Products Duty and Vaping Duty Stamps: Compliance: Insolvency

Where the approved legal person is facing a situation such as:

• bankruptcy

• winding up (liquidation)

• administration

• entering into a voluntary arrangement (for example, a CVA)

then an Insolvency Practitioner will be appointed. They will either try to salvage the business, or find a solution that benefits all concerned, such as:

• disposing of the business assets and recovering whatever monies are possible

• collecting any monies that are due to the company

• agreeing any claims made by creditors

• distributing monies collected after costs have been covered

Whether the approvals can continue is at the discretion of HMRC and the circumstances will dictate what action you need to take.

The IP does not require a separate approval once they are appointed, and the business may continue to trade under the original approvals.

Once notified of an IP’s involvement with an approved trader, you should update the relevant records. If the IP:

• can save the business, then it should be treated as a TOGC (see the guidance here VPDS051000)

• decides that the business needs to dispose of assets, any duty suspended goods must be disposed of correctly (brought to account or remove under duty suspense if allowed)

Whatever the outcome, any unused duty stamps held must be returned as they cannot be transferred between different entities (see VPDS157000). If they are transferred, then this will incur a penalty.

You should decide whether the trader is allowed to retain their approvals – if not, they should be revoked in full (see guidance at VPDS200000).

Further advice can be sought from the ISBC information hub.