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Paragraph 15

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—

F1(a)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)

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

(c)

it does not consist (either 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 counts 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)

In sub-paragraph (2) “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 member of the group.

Annotations

Textual amendments

F1

Sch. 5 para. 15(1)(a) omitted (with effect in accordance with s. 6(5) of the amending Act) by virtue of Finance (No. 3) Act 2010 (c. 33), s. 6(4)

Notes on Schedule 5

Modifications

C1

Sch. 5 modified (18.3.2026) by Finance Act 2026 (c. 11), s. 16

C2

Sch. 5 modified (6.4.2026) by Finance Act 2026 (c. 11), s. 13(10)