Income Tax Act 2007 section 837H

Interpretation of Chapter

Section 837H provides key definitions used throughout the Chapter dealing with banks and similar deposit-taking businesses in compulsory liquidation, including what constitutes permanent cessation of trade, insolvency, and the meaning of "company".

• A company's trade is treated as permanently ceased either when it stops trading or when it leaves the charge to corporation tax on that trade, regardless of whether the trade itself has actually ended.
• A company is considered insolvent if it cannot pay its debts as they fall due, or if its total assets are worth less than its total liabilities (including contingent and prospective liabilities).
• "Company" means either a company as defined in section 1(1) of the Companies Act 2006 or an unregistered company as defined in section 220 of the Insolvency Act 1986 (or its Northern Ireland equivalent).
• The definitions of "deposit-taking trade" and "winding up receipt" are found in sections 837B(3) and 837C(3) respectively.