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UK temporary insolvency measures to be phased out from 1 October

The UK Government has announced today that temporary measures to protect businesses in distress introduced in response to the Covid-19 pandemic through the Corporate Insolvency and Governance Act 2020 will be lifted from 1 October 2021. 

New measures intended to protect small businesses as the economy reopens, particularly in the retail, hospitality and leisure sectors, are to be introduced, with effect until 31 March 2022.

Restrictions that prevent commercial landlords from presenting winding-up petitions against limited companies due to commercial rent arrears built up during the Covid-19 pandemic are also expected to remain in place.

The full press release can be viewed at the link below.

Business Minister Lord Callanan said: The success of our vaccine rollout means we are seeing life and the economy returning to normal with a strong rebound, and the time is right to lift the insolvency restrictions that were needed during the pandemic. At the same time, we know many smaller businesses are rebuilding their balance sheets and reserves, and some will need more time to get back on their feet. These new measures protections will help them to do that.