Paragraph 11

A company (“the subsidiary”) is a qualifying subsidiary of a company (“the holding company”) if the following conditions are met.

The conditions are—

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Sub-paragraph (5) applies at a time when the subsidiary or another company is being wound up.

The subsidiary is not to be regarded as having ceased, on account of the winding up, to be a company in relation to which the conditions in sub-paragraph (2) are met if—

Sub-paragraph (7) applies at a time when arrangements are in existence for the disposal by—

of all of its interest in the subsidiary.

The subsidiary is not to be regarded as having ceased, on account of those arrangements, to be a company in relation to which the conditions in sub-paragraph (2) are met if the disposal is to be for commercial reasons and is not to be part of a scheme or arrangement the main purpose (or one of the main purposes) of which is the avoidance of tax.

Sub-paragraph (9) applies at a time when the subsidiary or another company is in administration or receivership.

The subsidiary is not to be regarded, by reason only of anything done as a consequence of the company concerned being in administration or receivership, as having ceased to be a company in relation to which the conditions in sub-paragraph (2) are met if—

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.

F7Section 252 of ITA 2007 (meaning of being in administration or receivership) applies for the purposes of sub-paragraphs (8) and (9) as it applies for the purposes of F8Part 5 of ITA 2007 (enterprise investment scheme).