Section 257DB | Ceasing to meet trading requirement: administration etc ^F1

(1)A company is not regarded as ceasing to meet the trading requirement merely because of anything done in consequence of the company or any of its subsidiaries being in administration or receivership.This is subject to subsections (2) and (3).^F1

(2)Subsection (1) applies only if—^F1

(a)the entry into administration or receivership, and^F1

(b)everything done as a result of the company concerned being in administration or receivership,^F1

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.

(3)A company ceases to meet the trading requirement if before the end of period B—^F1

(a)a resolution is passed, or an order is made, for the winding up of the company or any of its subsidiaries (or, in the case of a winding up otherwise than under the Insolvency Act 1986 or the Insolvency (Northern Ireland) Order 1989, any other act is done for the like purpose), or^F1

(b)the company or any of its subsidiaries is dissolved without winding up.^F1

This is subject to subsection (4).

(4)Subsection (3) does not apply if the winding up or dissolution 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.^F1