# Finance Act 2000, Paragraph 24

Extent: E+W+S+N.I.

(1) A company ... shall not be regarded as ceasing to meet the trading activities requirement by reason only 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—
(a) the entry into administration or receivership, and
(b) everything done as a consequence of the company concerned 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 Insolvency Act 1986 or the Insolvency (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 only 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 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.

---
Source: https://www.legislation.gov.uk/ukpga/2000/17/schedule/15/paragraph/24 (the official version)
Page: https://openlegislation.uk/finance-act-2000/schedule-15/paragraph-24
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.