Income Tax Act 2007 section 837B

Application of Chapter

Section 837B sets out the conditions that must be met for this Chapter — dealing with insolvent deposit-taking companies in court-driven winding up — to apply.

• The Chapter applies where a company is being, or has been, wound up by a court in the United Kingdom and three conditions (A, B and C) are all satisfied.
• Condition A requires that the company was lawfully carrying on a deposit-taking business — holding the necessary permission under Part 4 of the Financial Services and Markets Act 2000 — at some point during a specified 12-month look-back period.
• Condition B requires that the company has permanently ceased to carry on the trade that included its deposit-taking business.
• Condition C requires that the company is insolvent, either at the date the winding-up proceedings started or at any point within the following 12 months.