Textual Amendments
F1Words in Pt. 13 heading omitted (with effect in relation to accounting periods beginning on or after 1.4.2024) by virtue of Finance Act 2024 (c. 3), Sch. 1 paras. 3, 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Textual Amendments
F2Pt. 13 Ch. 8 substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 8, 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
(1)For the purposes of section 1112F, a company is a going concern if—
(a)its latest published accounts were prepared on a going concern basis, and
(b)nothing in those accounts indicates that they were prepared on that basis only because of an entitlement or expected entitlement to a credit or relief under this Part.
(2)But a company is not a going concern if it is in administration or liquidation.
(3)For the purposes of this section, a company is in administration if—
(a)it is in administration under Part 2 of the Insolvency Act 1986 or Part 3 of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)), or
(b)a corresponding situation under the law of a country or territory outside the United Kingdom exists in relation to the company.
(4)For the purposes of this section, a company is in liquidation if—
(a)it is in liquidation within the meaning of section 247 of that Act or Article 6 of that Order, or
(b)a corresponding situation under the law of a country or territory outside the United Kingdom exists in relation to the company.
(5)If—
(a)a company transfers its trade and research and development to another company that is a member of the same group, and
(b)only by reason of that transfer, the company’s accounts for the period of account in which the transfer took place are not prepared on a going concern basis,
the accounts are to be treated for the purposes of this section as if they were prepared on a going concern basis.
(6)Section 436(2) of the Companies Act 2006 (meaning of “publication” of documents) has effect for the purposes of this section.]