A new SIP 6 (E&W) and a new SIP 11 (UK wide) come into effect on 1 January 2018. Set out below is the background to the new SIPs and details of the changes made to the SIPs since the JIC consultations.
The Joint Insolvency Committee (JIC) has been consulting on the interim statement of insolvency practice 6 (England and Wales) (SIP 6) which was introduced in April 2017 to coincide with the new insolvency rules coming into force. The consultation closed on 13 October 2017.
The responses received to the consultation have been reviewed by the JIC working group which had developed the SIP and a revised version of SIP 6 has been produced as a consequence of that review taking into account the feedback received. The working group comprised insolvency practitioners and representatives of HMRC and the Insolvency Service.
Insolvency practitioners should note the changes made to the interim version of SIP 6 as set out below:
The new SIP 6 will replace the interim version of SIP 6, effective 1 January 2018.
Please note that the SIP applies in England and Wales only.
The JIC has also been consulting on changing SIP 11. The current SIP dates back to 2007 and was not thought to adequately or fully reflect current practice structures and the banking products used by insolvency practitioners or the practices in which they work. The consultation draft was produced by a working group of the JIC comprising members of the profession from firms of different sizes with views obtained from creditor representatives including HMRC. The consultation closed on 12 September 2017.
The responses to the SIP 11 consultation were also been reviewed by the JIC working group and a revised version of the SIP has been produced.
Only minor changes have been made to the consultation draft but insolvency practitioners may wish to note the following:
The new SIP 11 will be effective from 1 January 2018.
SIP 11 will apply UK wide.