Edinburgh's Summerhall hit with HMRC 'winding up' order over alleged unpaid tax as festival in jeopardy

An Edinburgh arts venue that hosts multiple Fringe Festival events has been hit with a “winding up” order by HMRC over alleged unpaid corporation tax.

Summerhall in the Southside of the capital went up for sale in May this year and was saved after being granted a new three-year lease by its owners.

Yet HMRC issued the centre with a “winding up” petition over claims of unpaid corporation tax which Summerhall’s director denies.

Push the Boat Out, the city’s international poetry festival, due to take place next month said questions had been raised about whether the events can go ahead.

A total of 130 artists have been booked to appear at the event which begins on November 22.

Robert McDowell, director of Summerhall Management Limited: “Summerhall Management has had a winding up petition presented against it by HMRC. The petition is in relation to unpaid Corporation Tax.

“We believe there is no corporation tax due to HMRC and have been working with professional advisors to address and resolve matters with HMRC.

“Summerhall Management are defending the proceedings raised and we hope a resolution can be achieved which will allow us to deal with this and move on quickly.

“At this time, we must follow a very strict set of guidelines imposed upon us of what we can and cannot do, please bear with us whilst we work to fully understand the situation.

“The team are already in communication with those we work with who may be affected by this action, but we intend to trade as best we can, and in line with what is permissible, whilst we defend this action.

“The landlord, for whom we manage the building for on their behalf, have also been made aware and will be in direct communication with their tenants as required.”

A statement from Push the Boat Out said: “News of this development emerged just two days before we were due to launch Push the Boat Out, Edinburgh’s International Poetry Festival, which has 130 artists booked to appear as part of 54 events from November 22-24.

“This had an immediate impact on our ability to sell tickets though Summerhall, while also raising questions about the venue.

“We took the difficult decision to delay announcing the programme and putting tickets on sale while we establish more clarity and investigate potential solutions.

“As a small charity, this is a hugely challenging development and we are deeply concerned about what it means for our festival, the artists involved, our partners and audiences.

“We are working hard to ensure that the festival can go ahead, either at Summerhall or in an alternative venue and we will share our plans as soon as possible.”

On September 16, the petition was presented to Edinburgh Sheriff Court by the Advocate General for Scotland for and on behalf of the Commissioners for HMRC and to appoint a liquidator.

An HMRC spokesperson said: “We take a supportive approach to dealing with customers who have tax debts, working with them to find the best possible solution based on their financial circumstances.”

It was also announced on Tuesday that Shona McCarthy, chief executive of the Edinburgh Festival Fringe Society, is to leave her post in spring 2025 after nearly a decade.

Fleabag star Phoebe Waller-Bridge, honorary President of the society paid tribute to the outgoing chief saying she was “devastated” McCarthy was leaving.