Income Tax Act 2007 (c. 3)

Part 6 U.K. Venture capital trusts

Chapter 4 U.K. Qualifying holdings

The requirements U.K.

292 Ceasing to meet requirements because of administration or receivership U.K.

(1) A company is not regarded as ceasing to meet the requirement of section 290 or 291 merely because of anything done in consequence of its being in administration or receivership.

(2) Subsection (1) applies only if—

(a) the entry into administration or receivership, and

(b) everything done as a consequence of the company being in administration or receivership,

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.