A Brexit no deal will result in more
expensive and time-consuming insolvency proceedings, and lead
to companies streamlining operations. These issues could be
exacerbated with HM Revenue and Customs (HMRC) set to be made
the preferred creditor in business insolvencies, which could
disincentive banks from lending to small and medium sized
businesses and increase the already high risk of
Sumner, technical and education director at UK
insolvency lobby group R3, said that if automatic recognition
goes in the event of a no deal, it will become more expensive
for companies and the process will be a lot more delayed.
"It’s going to be much
harder to trace assets abroad, compared to now where it has
been easy to set up subsidiaries," she said. "This could mean
companies are streamlined and only based in the UK to avoid any
The UK is currently part of...