# Finance Act 2000, Paragraph 25

Extent: E+W+S+N.I.

(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 the issuing company or any of its qualifying 90% subsidiaries.

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Source: https://www.legislation.gov.uk/ukpga/2000/17/schedule/15/paragraph/25 (the official version)
Page: https://openlegislation.uk/finance-act-2000/schedule-15/paragraph-25
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.