# Income Tax (Earnings and Pensions) Act 2003, Paragraph 15

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

(1) A trade is a qualifying trade if—
(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.

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Source: https://www.legislation.gov.uk/ukpga/2003/1/schedule/5/paragraph/15 (the official version)
Page: https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003/schedule-5/paragraph-15
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.