Section 169VV — Taxation of Chargeable Gains Act 1992: “Trading company” etc

“Trading company” etc 169VV 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.