144 Irrecoverable debts.U.K.
(1)In a case where—
(a)a qualifying company holds an asset consisting of a right to settlement under a qualifying debt or owes a liability consisting of a duty to settle under such a debt, and
(b)the inspector is satisfied, as regards any accounting period of the company, that all of the debt outstanding immediately before the end of the period could at that time reasonably have been regarded as irrecoverable,
the company shall be treated for the purposes of this Chapter as if immediately before the end of that accounting period it ceased to be entitled to the asset or subject to the liability.
(2)Subsection (3) below applies in a case where—
(a)paragraph (a) of subsection (1) above applies, and
(b)the inspector is satisfied, as regards any accounting period of the company, that part of the debt outstanding immediately before the end of the period could at that time reasonably have been regarded as irrecoverable.
(3)The company shall be treated for the purposes of this Chapter as if—
(a)immediately after the beginning of the accounting period next following the accounting period mentioned in subsection (2) above there were a decrease in the nominal amount of the debt outstanding, and
(b)the decrease were of an amount equal to so much of the debt, expressed in its settlement currency, as was outstanding immediately before the end of the accounting period mentioned in subsection (2) above and in the opinion of the inspector could at that time reasonably have been regarded as irrecoverable.
(4)Where there is an appeal, this section shall be construed as if—
(a)“inspector is satisfied” (in each place) read “ Commissioners concerned are satisfied ”, and
(b)“opinion of the inspector” read “ opinion of the Commissioners concerned ”.
Modifications etc. (not altering text)
C1S. 144(1) modified (23.3.1995) by S.I. 1994/3226, reg. 4(1) (subject to reg. 4(2))