Section 837H | Interpretation of Chapter ^F1

(1)This section applies for the purposes of this Chapter.^F1

(2)There is the permanent cessation of a company's trade if—^F1

(a)the company ceases to carry on the trade, or^F1

(b)the company ceases to be within the charge to corporation tax in respect of the trade,^F1

whether or not the trade is in fact ceased.

(3)A company is insolvent at any time if at that time—^F1

(a)it is unable to pay its debts as they fall due, or^F1

(b)the value of its assets is less than the amount of its liabilities (including its contingent and prospective liabilities).^F1

(4)“Company” means—^F1

(a)a company as defined in section 1(1) of the Companies Act 2006, or^F1

(b)an unregistered company as defined in section 220 of the Insolvency Act 1986 or Article 184 of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)).^F1

(5)For the meaning of “deposit-taking trade” and “winding up receipt”, see sections 837B(3) and 837C(3) respectively.^F1