Section 169VV “Trading company” etcF1

(1)

In this Chapter “trading company” and “the holding company of a trading group” have the same meaning as in section 165 (see section 165A).

(2)

For the purposes of this Chapter a company is not to be regarded as ceasing to be a trading company, or the holding company of a trading group, merely because of anything done in consequence of—

(a)

the company, or any of its subsidiaries, being in administration or receivership, or

(b)

a resolution having been passed, or an order made, for the winding up of the company or any of its subsidiaries.

(3)

But subsection (2) applies only if—

(a)

the entry into administration or receivership, or the resolution or order for winding up, and

(b)

everything done as a result of the company concerned being in administration or receivership, or as a result of that resolution or order,

is for genuine 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.

Annotations

Textual amendments

F1: Pt. 5 Ch. 5 inserted (15.9.2016) by Finance Act 2016 (c. 24), Sch. 14 para. 2

Notes on Part V

Textual amendments

F1: Words in Pt. 5 heading inserted (15.9.2016) by Finance Act 2016 (c. 24), Sch. 14 para. 1(1)
F2: Words in Act substituted (with effect for the tax year 2020-21 and subsequent tax years) by Finance Act 2020 (c. 14), Sch. 3 paras. 7(2)(a), 8 (with Sch. 3 para. 7(3))