Corporation Tax Act 2010 section 641

Interpretation of Chapter

Section 641 provides the key definitions and interpretive rules that apply throughout the Chapter dealing with banks and similar deposit-taking institutions in compulsory liquidation.

• Winding up proceedings begin when a petition for compulsory winding up is presented to the court.
• A company's trade permanently ceases if it stops carrying on the trade or falls outside the charge to corporation tax on that trade, regardless of whether the trade itself actually ends.
• A company is insolvent if it cannot pay its debts as they fall due, or its assets are worth less than its total liabilities (including contingent and prospective liabilities).
• The term "company" covers both companies registered under the Companies Act 2006 and unregistered companies as defined in insolvency legislation for Great Britain and Northern Ireland.