(1)The requirement of this section is met if, at no time after the issue of the relevant holding, has the relevant qualifying activity in question been carried on by a person other than—
(a)the relevant company, or
(b)a qualifying 90% subsidiary of that company.
In this subsection “the relevant qualifying activity in question” means the relevant qualifying activity by reference to which the requirement of section 293 is met.
(2)The requirement of this section is not to be regarded as failing to be met merely because of the carrying on of the trade in question by a person other than the relevant company, or a qualifying subsidiary of that company, at any time—
(a)after the issue of the relevant holding, and
(b)before the relevant company, or any qualifying 90% subsidiary of that company, carries on that trade.
(3)The requirement of this section is not to be regarded as failing to be met merely because of the carrying on of the trade in question—
(a)by the partners in a partnership of which the relevant company, or a qualifying 90% subsidiary of that company, is a member, or
(b)by the parties to a joint venture to which the relevant company, or a qualifying 90% subsidiary of that company, is a party.
(4)The requirement of this section is not to be regarded as failing to be met if—
(a)merely because of anything done as a consequence of the relevant company or any other company being in administration or receivership, or
(b)merely because of the relevant company or any other company being wound up or dissolved without winding up,
the trade in question ceases to be carried on by the relevant company or a qualifying 90% subsidiary of that company and is subsequently carried on by a person who has not been connected, at any time after the date which is 12 months before the issue of the relevant holding, with the relevant company.
(5)Subsection (4) applies only if—
(a)the entry into administration or receivership and everything done in consequence of the company concerned being in administration or receivership, or
(b)the winding up or dissolution,
is for genuine commercial reasons and is not part of a scheme or arrangement the purpose or one of the main purposes of which is the avoidance of tax.
(6)In this section “the trade in question” means so much of the relevant qualifying activity mentioned in subsection (1) as consists of—
(a)a trade which was being carried on at the time when the relevant holding was issued, or
(b)a trade for the carrying on of which preparations were being made at that time.
(7)The definition of “relevant qualifying activity” in subsection (8) of section 293 applies for the purposes of this section as it applies for the purposes of that section.