Paragraph 24

United Kingdom

(1)

A company F1... shall not be regarded as ceasing to meet the trading activities requirement by reason F2only of anything done as a consequence of the company, or any of its qualifying subsidiaries, being in administration or receivership.

This sub-paragraph has effect subject to sub-paragraphs (2) and (3).

(2)

Sub-paragraph (1) applies only if—

F3(a)

the entry into administration or receivership, and

(b)

everything done as a consequence of the company F4concerned being in administration or receivership,

is for commercial reasons and is not part of a scheme or arrangement the main purpose or one of the main purposes of which is the avoidance of tax.

(3)

A company ceases to meet the trading activities requirement if—

(a)

a resolution is passed, or an order is made, for the winding up of the company or any of its qualifying subsidiaries (or, in the case of a winding up otherwise than under the M1Insolvency Act 1986 or the M2Insolvency (Northern Ireland) Order 1989, any other act is done for the like purpose), or

(b)

the company, or any of its qualifying subsidiaries, is dissolved without winding up.

This is subject to sub-paragraph (4).

(4)

A company shall not be regarded as ceasing to meet the trading activities requirement if—

(a)

it does so by reason F5only of the company or any of its qualifying subsidiaries being wound up or dissolved without winding up, and

(b)

the winding up or dissolution is for commercial reasons F6and is not part of a scheme or arrangement the main purpose or one of the main purposes of which is the avoidance of tax.

Annotations

Textual amendments

F1: Words in Sch. 15 para. 24(1) repealed (22.7.2004) (with effect in accordance with Sch. 20 para. 15 of the amending Act) by Finance Act 2004 (c. 12), Sch. 20 para. 8(a)(i), Sch. 42 Pt. 2(13)
F2: Word in Sch. 15 para. 24(1) inserted (22.7.2004) (with effect in accordance with Sch. 20 para. 15 of the amending Act) by Finance Act 2004 (c. 12), Sch. 20 para. 8(a)(ii)
F3: Sch. 15 para. 24(2)(a) substituted (15.9.2003) by Enterprise Act 2002 (Insolvency) Order 2003 (S.I. 2003/2096), art. 1(1), Sch. para. 34(b) (with art. 6)
F4: Word in Sch. 15 para. 24(2)(b) inserted (22.7.2004) (with effect in accordance with Sch. 20 para. 15 of the amending Act) by Finance Act 2004 (c. 12), Sch. 20 para. 8(b)
F5: Words in Sch. 15 para. 24(4)(a) substituted (22.7.2004) (with effect in accordance with Sch. 20 para. 15 of the amending Act) by Finance Act 2004 (c. 12), Sch. 20 para. 8(c)(i)
F6: Words in Sch. 15 para. 24(4)(b) substituted (22.7.2004) (with effect in accordance with Sch. 20 para. 15 of the amending Act) by Finance Act 2004 (c. 12), Sch. 20 para. 8(c)(ii)

Marginal citations

M1: 1986 c. 45.
M2: S.I. 1989/2405 (N.I.19).