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Paragraph 18

United Kingdom

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

A trade is a qualifying trade if—

(a)

it is carried on wholly or mainly in the United Kingdom,

(b)

it is conducted on a commercial basis and with a view to the realisation of profits, and

(c)

it does not consist wholly or as to a substantial part in the carrying on of excluded activities.

(2)

The carrying on of activities of research and development from which it is intended that a connected qualifying trade will be derived or benefit is treated as the carrying on of a qualifying trade.

But preparing to carry on such activities does not count as preparing to carry on a qualifying trade.

(3)

For the purposes of sub-paragraph (2) a “connected qualifying trade” means a qualifying trade carried on—

(a)

by the company carrying on the activities of research and development, or

(b)

if that company is a member of a group, by any other group company.

Notes on Schedule 14

Textual amendments

F1

Sch. 14 repealed (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 8 Pt. 1 (with Sch. 7)