D7.725 Compulsory liquidation of banks
A special relief against post-cessation receipts is available for expenses and losses incurred by banks etc in compulsory liquidation, which would have been allowable if the trade of the company had continued1. It is expressly stated that these provisions take precedence over the loan relationship rules2.
It is understood that the relief also applies to the winding-up of UK deposit taking permanent establishments of overseas companies (as understood by the British Bankers' Association from discussions with HMRC.).
Companies eligible for relief
The relief applies to a company (that is a company as defined in the Companies Act 2006 s 1)3 which4:
- Ìý
•ÌýÌýÌýÌý has been or is being wound-up by a UK court. A UK permanent establishment of an overseas company which is being wound-up by an overseas court would therefore not qualify for relief
- Ìý
•ÌýÌýÌýÌý was lawfully carrying on a business of accepting deposits, as:
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