Section 359: Exclusion of credits on release of connected companies debts during creditor’s insolvency
1148.This section precludes a debtor company from bringing a credit into account on the release of a debt where the creditor company meets the insolvency, etc conditions in section 357 if the insolvency, etc breaks the connected company relationship. It is based on paragraph 5(3) and (6) of Schedule 9 to FA 1996.
1149.Subsection (1)(d) and (e) reflect the rule in section 12(7) and (7ZA) of ICTA that an accounting period ends with insolvency or administration.