Finance (No. 2) Act 1992

3 (1) Tax shall be charged F1 ... 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.

[F2 (1A) So far as relating to corporation tax, the charge to tax under sub-paragraph (1) has effect as an application of the charge to corporation tax on income.]

(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 F3 ... [F4 section 173 of the Income Tax (Trading and Other Income) Act 2005] [F5 or section 162 of the Corporation Tax Act 2009] (valuation of trading stock at discontinuance);

F6 (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.

[F7 (5) This paragraph and paragraph 4 below have effect for the purposes of corporation tax notwithstanding anything in [F8 section 464(1) of the Corporation Tax Act 2009 (matters to be brought into account in the case of loan relationships only under Part 5 of that Act)].]

Textual Amendments

F1 Words in Sch. 12 para. 3(1) repealed (1.4.2009) (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 390(2), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

F2 Sch. 12 para. 3(1A) inserted (1.4.2009) (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 390(3) (with Sch. 2 Pts. 1, 2)

F3 Words in Sch. 12 para. 3(3) repealed (1.4.2009) (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 390(4)(a), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

F4 Words 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)

F5 Words in Sch. 12 para. 3(3) inserted (1.4.2009) (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 390(4)(b) (with Sch. 2 Pts. 1, 2)

F6 Sch. 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)

F7 Sch. 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)

F8 Words in Sch. 12 para. 3(5) substituted (1.4.2009) (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 390(5) (with Sch. 2 Pts. 1, 2)