Income Tax Act 2007 section 252

Meaning of a company being "in administration" or "in receivership"

Section 252 defines what it means for a company to be "in administration" or "in receivership" for the purposes of the Enterprise Investment Scheme and related income tax reliefs.

• A company is "in administration" if an administrator has been appointed under UK insolvency law (covering both Great Britain and Northern Ireland) or under an equivalent appointment in a country or territory outside the United Kingdom.
• A company is "in receivership" if a receiver, receiver and manager, or administrative receiver has been appointed under UK insolvency law, or under a corresponding order in a country or territory outside the United Kingdom.
• The definitions cover both domestic insolvency proceedings under the Insolvency Act 1986 and the Insolvency (Northern Ireland) Order 1989, as well as equivalent overseas proceedings.
• These definitions are relevant when determining whether a company's insolvency status affects the availability of tax reliefs under this Part of the Act.