# Income Tax Act 2007, Section 179: Meaning of “qualifying business activity”

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

(1) In this Part “qualifying business activity”, in relation to the issuing company, means—
(a) activity A, or
(b) activity B,
if it is carried on by the company or a qualifying 90% subsidiary of the company.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) Activity A is—
(a) the carrying on of a qualifying trade which, on the date the relevant shares are issued, the company or a qualifying 90% subsidiary of the company is carrying on, or
(b) the activity of preparing to carry on (or preparing to carry on and then carrying on) a qualifying trade—
(i) which, on that date, is intended to be carried on ... by the company or such a subsidiary, and
(ii) which is begun to be carried on by the company or such a subsidiary within two years after that date.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) Activity B is the carrying on of research and development—
(a) which, on the date the relevant shares are issued, the company or a qualifying 90% subsidiary of the company is carrying on, or which the company or such a subsidiary begins to carry on immediately afterwards, and
(b) from which, on that date, it is intended—
(i) that a qualifying trade which the company or such a subsidiary will carry on ... will be derived, or
(ii) that a qualifying trade which the company or such a subsidiary is carrying on, or will carry on, ... will benefit.
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) In determining—
(a) for the purposes of subsection (2)(b) when a qualifying trade is begun to be carried on by a qualifying 90% subsidiary of the company, or
(b) for the purposes of subsection (4)(a) when research and development is begun to be carried on by such a subsidiary,
any carrying on of the trade or, as the case may be, the research and development by it before it became such a subsidiary is ignored.
(7) References in subsection (2)(b)(i) or (4)(b) to a qualifying 90% subsidiary of the company include references to any existing or future company which will be such a subsidiary at any future time.

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Source: https://www.legislation.gov.uk/ukpga/2007/3/section/179 (the official version)
Page: https://openlegislation.uk/income-tax-act-2007/section-179
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.