Finance (No. 2) Act 1992

2(1)Sub-paragraphs (2) to (5) below apply for the purposes of this Schedule.U.K.

(2)Company” means—

(a)any company as defined in section 735 of the M1Companies Act 1985 or Article 3 of the M2Companies (Northern Ireland) Order 1986, or

(b)any unregistered company as defined in section 220 of the M3Insolvency Act 1986 or Article 184 of the M4Insolvency (Northern Ireland) Order 1989.

(3)Winding-up proceedings shall be taken to have been commenced against a company at the time of the presentation of the petition for its winding up by the court.

(4)A company’s ceasing to carry on a trade, or to be within the charge to corporation tax in respect of a trade, shall be treated as the permanent discontinuance of the trade, whether or not the trade is in fact discontinued.

(5)A company shall be taken to be insolvent, or to have been insolvent at any time, if—

(a)it is unable to pay its debts as they fall due, or was at that time unable to pay its debts as they fell due, or

(b)the value of the its assets is, or was at that time, less than the amount of its liabilities (taking into account its contingent and prospective liabilities).