Section 132 VAT: requirement to set-off

(1)

Section 81 of VATA 1994 (set-off of credits etc) is amended as follows.

(2)

For subsection (4C) substitute—

(4C)
In this section, references to the application of an insolvency procedure to a person do not include—
(a)
the application of an insolvency procedure to a person at a time when another insolvency procedure applies to the person, or
(b)
the application of an insolvency procedure to a person immediately upon another insolvency procedure ceasing to have effect.

(3)

In subsection (5)—

(a)

omit paragraph (a),

(b)

in paragraph (b)—

(i)

for “that Act of 1986” substitute “ the Insolvency Act 1986 ”, and

(ii)

for “that Order of 1989” substitute “ the Insolvency (Northern Ireland) Order 1989 ”, and

(c)

before the “and” at the end of paragraph (b) insert—

(ba)
“administrator” means a person appointed to manage the affairs, business and property of another person under Schedule B1 to that Act or to that Order;