Summerhall remains in limbo over HMRC case

The situation at Edinburgh arts hub Summerhall continues to be bleak. As many will be aware, Summerhall Management Ltd, the company that operates Summerhall, is currently fighting a case against HMRC, who hit the venue with a winding-up petition in October, claiming unpaid corporation tax was owed. Summerhall said this was a mistake. 

When the winding-up petition was applied, Summerhall suggested it would take a matter of weeks to resolve the error, but any hope for a quick resolution has been dashed today (29 Nov), as the courts have ruled that Summerhall’s case with HMRC will continue until 14 February. “I was not expecting this to be the outcome and will now need to take some time to consult with Summerhall Management's professional advisors and map out our next steps over the coming days,” says Robert McDowell, Director of Summerhall Management Limited, in a statement.

The winding-up order remains in place and Summerhall's bank accounts will continue to be frozen for the next three months, meaning that all the artists who are owed box office revenue from Summerhall will continue to be out of pocket, and won’t find out if their money can be received at all until then. 

McDowell's statement also suggested that he would be considering all options available to him. Summerhall have told us by email that the sale of the building wouldn't have a direct impact on the HMRC case, but there have been renewed rumours that the owners of the Summerhall site are closer to a sale to a property developer – reports earlier this year in the Edinburgh Inquirer stated that Summerhall’s preferred buyer was AMA Homes, a company whose MO in turning historic buildings into upmarket housing. “Whilst I am confident that there is no corporation tax due,” says McDowell, “I will now look at any and all options available to me that offer the best outcome for my staff, the Fringe companies and other stakeholders who are affected.”

In the statement, McDowell attributed the issues with HMRC to a decade-old accounting mistake and seemed to take personal responsibility for the error. “I established Summerhall to help and support artists in our city, and especially during the Fringe,” he says. “That it has come to this because of an accounting error made over ten years ago causes me great personal pain and anguish and I would like to apologise to everyone who has been affected by the current situation.”

We’re expected to have more information early next week, following Summerhall Management’s discussions with professional advisors. Until then, we can only hope for a Christmas miracle that the situation can be resolved without this hugely valuable venue, essential to Edinburgh’s art scene, being sold off to the highest bidder.