Section 300 Meaning of “qualifying trade”

United Kingdom

(1)

For the purposes of this Chapter, a trade is a qualifying trade if—

(a)

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

(b)

it does not consist wholly or as to a substantial part in the carrying on of excluded activities (see sections 303 to 310).

(2)

The carrying on of any activities of research and development from which it is intended—

F1(a)

that a trade will be derived which will be a qualifying trade, or

(b)

that a trade will benefit which is or will be a qualifying trade,

is to be treated as the carrying on of a qualifying trade.

(3)

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

(4)

References in this section to a trade are to be read without regard to the definition of “trade” in section 989.

Annotations

F1: S. 300(2)(a)(b) substituted (6.4.2011) (with effect in accordance with Sch. 2 paras. 7(3), 8 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 2 para. 2(11); S.I. 2011/662, art. 2