Section 1112G — Corporation Tax Act 2009: Meaning of “going concern”

Meaning of “going concern” 1112G 1 For the purposes of section 1112F , a company is a going concern if—

a its latest published accounts were prepared on a going concern basis, and b nothing in those accounts indicates that they were prepared on that basis only because of an entitlement or expected entitlement to a credit or relief under this Part.

2 But a company is not a going concern if it is in administration or liquidation.

3 For the purposes of this section, a company is in administration if—

a it is in administration under Part 2 of the Insolvency Act 1986 or Part 3 of the Insolvency (Northern Ireland) Order 1989 ( S.I. 1989/2405 (N.I. 19)) , or b a corresponding situation under the law of a country or territory outside the United Kingdom exists in relation to the company.

4 For the purposes of this section, a company is in liquidation if—

a it is in liquidation within the meaning of section 247 of that Act or Article 6 of that Order, or b a corresponding situation under the law of a country or territory outside the United Kingdom exists in relation to the company.

5 If—

a a company transfers its trade and research and development to another company that is a member of the same group, and b only by reason of that transfer, the company’s accounts for the period of account in which the transfer took place are not prepared on a going concern basis, the accounts are to be treated for the purposes of this section as if they were prepared on a going concern basis.

6 Section 436(2) of the Companies Act 2006 (meaning of “publication” of documents) has effect for the purposes of this section.