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Leamington Spa bankrupt man's restrictions extended for 10 years

THE UK’s insolvency authorities have imposed a new decade-long restriction on bankrupt man Sukhwinderjit Singh Sanghera.

Sanghera was declared bankrupt in 2017 but failed to declare one property in subsequent processes.


The Asian-origin Sanghera, 50, was made bankrupt by order of the County Court in Warwick, with debts of over £140,000.

The Leamington Spa resident, also known as Sukhwinderjit Singh Sanghera, or Sukhwinder Singh Sanghera, had his affairs passed into the control of the official receiver, and he was obliged to disclose all his assets to officials, including his property.

However, Sanghera failed to mention that he was the sole owner of a rental property in Coventry that generated a monthly income of £1,900.

Following investigations by the official receiver, the property was subsequently registered as an asset in Sanghera’s estate. The rental property was then sold, raising over £70,000.

Bankruptcy restrictions are usually lifted after a year but, in August, the secretary of state accepted 10-year bankruptcy restrictions undertaking from Sanghera after he did not dispute that he failed to disclose the property to the official receiver.

Kevin Read, official receiver for the Insolvency Service, said: “Sukhi Sanghera not only concealed a significant asset from the official receiver but also concealed its value from his creditors. He was completely prepared to leave them out of pocket.

“The 10-year extended bankruptcy restrictions we have secured reflect the severity of his actions and should serve as a warning to others to comply fully and openly with the bankruptcy process.”

Following the restrictions, he won't be able to borrow over £500 without telling a lender he is bankrupt and cannot act as a director of a company without the court’s permission.

He is also banned from being an elected councillor.

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Highlights

  • Kirstie Allsopp tells MPs that stamp duty punishes buyers and should be abolished.
  • 40 per cent of first-time buyers now face stamp duty, rising to 80 per cent in London.
  • Treasury considering annual property tax on homes worth over £500,000 as alternative.

Chancellor Rachel Reeves is facing mounting pressure to abolish stamp duty ahead of the November (26) budget, with property experts warning that the tax is stalling the housing market and damaging economic growth.

Television presenter Kirstie Allsopp, known for Channel 4's Location, Location, Location, told the Treasury committee that buyers are 'in a panic' about potential changes and many are 'sitting tight' rather than moving house.

Tim Leunig, director of economics at Public First Consulting and former adviser to several ministers including Rishi Sunak, went further. He pointed that every single person in the country is a loser from stamp duty land tax because it restricts people from moving. The people who are the biggest losers are genuinely young people because they move more often.

However, Leunig cautioned that simply abolishing stamp duty would likely drive up house prices, particularly in London. Instead, he has proposed an annual property tax on homes worth above £500,000, with a 0.54 per cent yearly levy on home value and a higher rate for properties exceeding £1 m.

The Guardian revealed in August that the Treasury is considering a new tax on the sale of homes worth more than £500,000 as part of a radical overhaul of stamp duty and council tax.

The debate comes at a critical time for the housing market, with stamp duty currently levied on property purchases above £125,000.

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