SCHEDULES
C1SCHEDULE 9 Loan relationships: special computational provisions
F1F15Impairment losses : parties having connection and creditor in insolvent liquidation etc
Sch. 9 para. 6A and cross-heading inserted (24.7.2002 with effect as mentioned in s. 82(2) of the amending Act) by Finance Act 2002 (c. 23), s. 82(1), Sch. 25 Pt. 1 para. 25
Words in Sch. 9 para. 6A heading substituted (with effect in accordance with s. 52(3) of the amending Act) by Finance Act 2004 (c. 12), Sch. 10 para. 23(2)
6A
1
This paragraph applies in any case falling within paragraph 6(1) above where—
a
the company which has the creditor relationship (“the creditor company”) F3is in insolvent liquidation;
F11bb
the company is in insolvent administrative receivership;
c
an appointment of a provisional liquidator is in force in relation to that company under section 135 of that Act or Article 115 of that Order; or
d
under the law of a country or territory outside the United Kingdom, F5circumstances exist corresponding to any of those described in paragraphs (a) to (c) above.
2
Where this paragraph applies, F14an impairment loss is not excluded by paragraph 6(3) in relation to any amount accruing to the creditor company under the relationship—
a
in a case falling within paragraph (a) of sub-paragraph (1) above, at a time F6in the course of the winding up;
b
in a case falling within paragraph (b) of that sub-paragraph, at a time F7in the course of the administration ;
F12bb
in a case falling within paragraph (bb) of that sub-paragraph, at a time when the appointment of the administrative receiver is in force;
c
in a case falling within paragraph (c) of that sub-paragraph, at a time when F9the company is in administration or the appointment of the provisional liquidator is in force; or
d
in a case falling within paragraph (d) of that sub-paragraph, at a time corresponding to that described in paragraph (a), (b) F13, (bb) or (c) above (as the case may be).
F23
For the purposes of this paragraph a company is in insolvent liquidation during the period which—
a
begins when it goes into liquidation, as defined in section 247(2) of the Insolvency Act 1986 or Article 6(2) of the Insolvency (Northern Ireland) Order 1989, at a time when its assets are insufficient for the payment of its debts and other liabilities and the expenses of the winding up, and
b
ends when the winding up is completed or otherwise brought to an end (whether under paragraph 37 or 38 of Schedule B1 to the Insolvency Act 1986 or otherwise).
4
For the purposes of this paragraph a company in administration is in insolvent administration if—
a
in the case of an administration under Schedule B1 to the Insolvency Act 1986, it entered administration at a time when its assets were insufficient for the payment of its debts and other liabilities and the expenses of the administration, or
b
in a case where an administration order has effect under Part 3 of the Insolvency (Northern Ireland) Order 1989, the order was made at such a time.
F105
For the purposes of this paragraph a company is in insolvent administrative receivership if—
a
there is in force in relation to that company an appointment of an administrative receiver, within the meaning of Chapter 1 or 2 of Part 3 of the Insolvency Act 1986 or Part 4 of the Insolvency (Northern Ireland) Order 1989, and
b
the company was put into administrative receivership at a time when its assets were insufficient for the payment of its debts and other liabilities and the expenses of administrative receivership.
Sch. 9 modified (19.7.2006) by Finance Act 2006 (c. 25), s. 136(2)(d)