ICTA88/S74 (2) provides the meaning of ‘relevant
arrangement or compromise' in ICTA88/S74 (1)(j): see
BIM42060. It covers schemes under
legislation such as the Insolvency Act 1986 or the Companies Act
1985. In broad terms, under these schemes a debtor is released from
all or part of their liabilities under an agreement with their
creditors which allows them to continue trading and avoid
bankruptcy or liquidation.
Further guidance on the treatment of debts including those
affected by a relevant arrangement or compromise' is at
BIM42700 onwards.
