Taxation of Chargeable Gains Act 1992 section 169VV

"Trading company" etc.

Section 169VV defines "trading company" and "holding company of a trading group" for the purposes of the investors' relief provisions, and protects a company's trading status where it enters insolvency proceedings for genuine commercial reasons.

• The terms "trading company" and "holding company of a trading group" carry the same meanings as those used for gift relief purposes under section 165A of TCGA 1992.
• A company does not automatically lose its trading company (or holding company of a trading group) status simply because it, or any of its subsidiaries, enters administration, receivership or winding up.
• This protection only applies if the insolvency process and all actions arising from it are carried out for genuine commercial reasons and are not part of a tax avoidance scheme or arrangement.
• The anti-avoidance condition requires that neither the main purpose nor one of the main purposes of the insolvency process or consequential actions is the avoidance of tax.