Set-off
32.—(1) Neither regulation 30 or 31 shall require any such amount as is mentioned in paragraph (1)(b) of either regulation (“the credit”) to be set off against any item mentioned in paragraph (1)(a) of either regulation (“the debit”) where—
(a)an insolvency procedure has been applied to the person entitled to the credit;
(b)the credit became due after that procedure was applied; and
(c)the liability to pay the debt either arose before that procedure was so applied or (having arisen afterwards) relates to, or to matters occurring in the course of, the carrying on of any business relevant for AL purposes at times before the procedure was so applied.
(2) An insolvency procedure is applied to a person for the purposes of this regulation in the circumstances described by sub-paragraphs (2) to (5) of paragraph 11 of Schedule 8 to the Act (insolvency procedures for the purposes of this regulation).