Finance Act 1996

[F1 6A (1) This paragraph applies in any case falling within paragraph 6(1) above where— U.K.

(a) the company which has the creditor relationship (“the creditor company”) [F2 is in] insolvent liquidation;

[F3 (b) [F4 that company has entered administration or] that company is in insolvent administration;]

[F5 (bb) 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, [F6 circumstances exist] corresponding to any of those described in paragraphs (a) to (c) above.

(2) Where this paragraph applies, [F7 an 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 [F8 in the course] of the winding up;

(b) in a case falling within paragraph (b) of that sub-paragraph, at a time [F9 in the course of the administration] ;

[F10 (bb) 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 [F11 the 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) [F12 , (bb)] or (c) above (as the case may be).

[F13 (3) 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.]

[F14 (5) 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.]

Textual Amendments

F1 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

F2 Words in Sch. 9 para. 6A(1)(a) substituted (with effect in accordance with Sch. 41 para. 5(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 41 para. 4(2)(a)

F3 Sch. 9 para. 6A(1)(b) substituted (with effect in accordance with Sch. 41 para. 5(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 41 para. 4(2)(b)

F4 Words in Sch. 9 para. 6A(1)(b) inserted (15.9.2003) by The Enterprise Act 2002 (Insolvency) Order 2003 (S.I. 2003/2096), art. 1(1), Sch. para. 29(a)(i) (with art. 6)

F5 Sch. 9 para. 6A(1)(bb) inserted (with effect in accordance with Sch. 8 para. 4(7) of the amending Act) by Finance Act 2004 (c. 12), Sch. 8 para. 4(3)

F6 Words in Sch. 9 para. 6A(1)(d) substituted (with effect in accordance with Sch. 41 para. 5(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 41 para. 4(2)(c)

F7 Words in Sch. 9 para. 6A(2) substituted (with effect in accordance with s. 52(3) of the amending Act) by Finance Act 2004 (c. 12), Sch. 10 para. 23(3)

F8 Words in Sch. 9 para. 6A(2)(a) substituted (with effect in accordance with Sch. 41 para. 5(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 41 para. 4(3)(a)

F9 Words in Sch. 9 para. 6A(2)(b) substituted (with effect in accordance with Sch. 41 para. 5(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 41 para. 4(3)(b)

F10 Sch. 9 para. 6A(2)(bb) inserted (with effect in accordance with Sch. 8 para. 4(7) of the amending Act) by Finance Act 2004 (c. 12), Sch. 8 para. 4(4)

F11 Words in Sch. 9 para. 6A(2)(b) inserted (15.9.2003) by virtue of The Enterprise Act 2002 (Insolvency) Order 2003 (S.I. 2003/2096), art. 1(1), Sch. para. 29(b) (with art. 6)

F12 Word in Sch. 9 para. 6A(2)(d) inserted (with effect in accordance with Sch. 8 para. 4(7) of the amending Act) by Finance Act 2004 (c. 12), Sch. 8 para. 4(5)

F13 Sch. 9 para. 6A(3)(4) substituted for Sch. 9 para. 6A(3) (with effect in accordance with Sch. 41 para. 5(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 41 para. 4(4)

F14 Sch. 9 para. 6A(5) inserted (with effect in accordance with Sch. 8 para. 4(7) of the amending Act) by Finance Act 2004 (c. 12), Sch. 8 para. 4(6)