Section 292 — Income Tax Act 2007: Ceasing to meet requirements because of administration or receivership

Ceasing to meet requirements because of administration or receivership 292 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.