[26AA Disapplication of disallowance under section 26A in insolvency]
Value Added Tax Act 1994 (1994 c 23) | Legislation

[26AA  Disapplication of disallowance under section 26A in insolvency]

[(1)     Section 26A(1) does not apply to a person in relation to credit for input tax which relates to a supply where—

(a)     at the time of the supply, no insolvency procedure had effect in relation to the person,

(b)     at any time during the relevant period, an insolvency procedure had effect in relation to that person (“the insolvent person”), and

(c)     the Commissioners have been notified in writing of the matter mentioned in paragraph (b) by or on behalf of a person authorised to deal with the insolvent person's affairs.

(2)     But where the insolvency procedure mentioned in subsection (1)(b) is a bankruptcy order, award of sequestration, protected trust deed or voluntary arrangement and that bankruptcy order is annulled, that award of sequestration is recalled or that protected trust deed or voluntary arrangement has come to an end prematurely—

(a)     the disapplication of section 26A(1) by subsection (1) above ceases to have effect, and

(b)     the person to which the bankruptcy order, award of sequestration, protected trust deed or voluntary arrangement relates is to be taken for the purposes of section 26A(1) as not being entitled to the credit for

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