- Latest available (Revised)
- Point in Time (21/02/2009)
- Original (As enacted)
Version Superseded: 01/04/2009
Point in time view as at 21/02/2009.
There are currently no known outstanding effects for the Finance (No. 2) Act 1992, SCHEDULE 12.
Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.
Section 66.
1(1)This Schedule applies where—U.K.
(a)a company is being, or has been, wound up by the court in the United Kingdom,
(b)the company was, at any time in the period mentioned in sub-paragraph (2) below, lawfully carrying on a [F1business of accepting deposits as—
(i)a person falling within section 840A(1)(b) of the Taxes Act 1988, or
(ii)an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to the Financial Services and Markets Act 2000 with permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation by virtue of paragraph 12 of that Schedule) to accept deposits,.]
(c)the trade of the company that included the [F2business of accepting deposits] (referred to in this Schedule as"the relevant trade") has been permanently discontinued, and
(d)the company is insolvent and either was so when the winding-up proceedings were commenced or became so at any time in the period of twelve months following the day on which they were commenced.
(2)The period mentioned in sub-paragraph (1)(b) above is the period of twelve months ending with—
(a)the day on which the winding-up proceedings were commenced, or
(b)the day on which the relevant trade was discontinued,
whichever was the earlier.
Textual Amendments
F1Sch. 12 para. 1(1)(b): sub-paras. (i) and (ii) and preceding words substituted (1.12.2001 with effect as mentioned in art. 74(2) of the amending S.I.) for words by S.I. 2001/3629, art. 74(1)
F2Words in Sch. 12 para. 1(1)(c) substituted (1.12.2001 with effect as mentioned in art. 74(2) of the amending S.I.) by S.I. 2001/3629, art. 74(1)
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).
Modifications etc. (not altering text)
C1Sch. 12 para. 2 modified (21.2.2009) by The Banking Act 2009 (Parts 2 and 3 Consequential Amendments) Order 2009 (S.I. 2009/317), arts. 1, 4
Marginal Citations
3(1)Tax shall be charged [F3(in the case of corporation tax, under Case VI of Schedule D)] in respect of any sums within sub-paragraph (2) below that are received by the company or its liquidator after—U.K.
(a)the commencement of the winding-up proceedings, or
(b)the discontinuance of the relevant trade,
whichever was the later.
(2)Subject to sub-paragraph (3) below, any sum arising from the carrying on of the relevant trade is within this sub-paragraph, in so far as its value was not brought into account in computing the profits or gains of the trade for any period before the discontinuance.
(3)The following are not within sub-paragraph (2) above—
(a)any sum received on behalf of a person who is entitled to it to the exclusion of the company and its liquidator;
(b)any sum realised by the transfer of an asset required to be valued under section 100 of the Taxes Act 1988 [F4or section 173 of the Income Tax (Trading and Other Income) Act 2005] (valuation of trading stock at discontinuance);
F5(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4)Where tax is chargeable in respect of any sum by virtue of this paragraph, any other provision charging that sum to tax shall not apply.
[F6(5)This paragraph and paragraph 4 below have effect for the purposes of corporation tax notwithstanding anything in section 80(5) of the Finance Act 1996 (matters to be brought into account in the case of loan relationships only under Chapter 2 of Part 4 of that Act).]
Textual Amendments
F3Words in Sch. 12 para. 3(1) substituted (30.3.2006) (with effect in accordance with art. 1(3)(4) of the amending S.I.) by The Income Tax (Trading and Other Income) Act 2005 (Consequential Amendments) Order 2006 (S.I. 2006/959), arts. 1(2), 4(2)
F4Words in Sch. 12 para. 3(3)(b) inserted (30.3.2006) (with effect in accordance with art. 1(3)(4) of the amending S.I.) by The Income Tax (Trading and Other Income) Act 2005 (Consequential Amendments) Order 2006 (S.I. 2006/959), arts. 1(2), 4(3)
F5Sch. 12 para. 3(3)(c) repealed (24.7.2002 with effect as mentioned in s. 107(5) of the amending Act) by 2002 c. 23, ss. 107(2), 141, Sch. 40 Pt. 3(18)
F6Sch. 12 para. 3(5) inserted (24.7.2002 with effect as mentioned in s. 107(5) of the amending Act) by 2002 c. 23, s. 107(3)
4(1)In computing the tax that is chargeable by virtue of paragraph 3 above for any chargeable period, there shall be deducted from the amount that would otherwise be chargeable to tax the aggregate amount of all losses, expenses and debits within sub-paragraph (2) below incurred in that chargeable period or before it, in so far as relief (whether under this sub-paragraph, sub-paragraph (3) below or any other provision of the Tax Acts) has not been given in respect of them already.U.K.
(2)Any loss, expense or debit (other than a loss, expense or debit arising directly or indirectly from the discontinuance itself) incurred—
(a)after the later of the two events mentioned in paragraph 3(1) above, or
(b)in the case of a loss, at or before the discontinuance of the relevant trade,
is within this sub-paragraph if it would have been deducted in computing for tax purposes the [F7profits] of the trade for any period, or deducted from or set off against those [F7profits] as so computed, had the trade continued.
F8(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F7Word in Sch. 12 para. 4(2) substituted (31.7.1998) by 1998 c. 36, s. 46(3), Sch. 7 para. 8
F8Sch. 12 para. 4(3) repealed (24.7.2002 with effect as mentioned in s. 107(5) of the amending Act) by 2002 c. 23, ss. 107(4), 141, Sch. 40 Pt. 3(18)
5U.K.Where the right of the company or its liquidator to receive any sum which is within paragraph 3(2) above (or which would be, if the right to receive it were not transferred) is transferred for value, any tax chargeable by virtue of paragraph 3 above shall be charged in respect of the amount or value of the consideration (or, in the case of a transfer otherwise than at arm’s length, in respect of the value of the right transferred as between parties at arm’s length); and references in this Schedule to sums received shall be construed accordingly.
6(1)Where any sum is—U.K.
(a)chargeable to tax by virtue of paragraph 3 above, and
(b)received in any chargeable period beginning in the period of six years following the day on which the relevant trade was discontinued,
the company or its liquidator may, by notice sent to the inspector within two years after that chargeable period, elect that the tax so chargeable shall be charged as if the sum in question were received on the day on which the trade was discontinued.
(2)Where such an election has been made, an assessment shall (notwithstanding anything in the Tax Acts) be made accordingly.
7U.K.This Schedule shall have effect in relation to chargeable periods ending after 10th March 1992.
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Point in Time: This becomes available after navigating to view revised legislation as it stood at a certain point in time via Advanced Features > Show Timeline of Changes or via a point in time advanced search.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: