Finance (No. 2) Act 1992

Introductory

1 (1) This Schedule applies where—

(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 deposit-taking business within the meaning of the [1987 c. 22.] Banking Act 1987 (otherwise than by virtue of an exemption under section 4 of that Act),

(c) the trade of the company that included the deposit-taking business (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.

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

(2) “Company” means—

(a) any company as defined in section 735 of the [1985 c. 6.] Companies Act 1985 or Article 3 of the [S.I. 1986/1032 (N.I. 6).] Companies (Northern Ireland) Order 1986, or

(b) any unregistered company as defined in section 220 of the [1986 c. 45.] Insolvency Act 1986 or Article 184 of the [S.I. 1989/2405 (N.I. 19).] Insolvency (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).