I don’t agree with everything that has been typed above.
The IVA does not affect the liability for CTAX which is determined under S6 LGFA92. So the person on the IVA should remain liable for the CTAX. The liability though is unenforceable against that person. I know for Academy users at least, leaving the person as liable can be dangerous as if the CTAX is not paid and reminder action is commenced, it can be difficult for it to be taken against one party only.
What should happen (though doesn’t always for practical reasons as mentioned above) is that both parties remain liable. Both parties remain eligible to claim CTS on their 50% shares of the tax, but they are both jointly and severally liable for any balance, albeit we cannot enforce payment against one (but we can the other).
