# Income Tax (Earnings and Pensions) Act 2003, Section 312D: Section 312B: the trading requirement


(1) For the purposes of section 312B, a company meets the trading requirement if—
(a) it is a trading company which is not a member of a group, or
(b) it is a member of a trading group.
(2) “Trading company” means a company carrying on trading activities whose activities do not include to a substantial extent activities other than trading activities.
(3) “Trading group” means a group—
(a) one or more of whose members carry on trading group activities, and
(b) the activities of whose members, taken together, do not include to a substantial extent activities other than trading group activities.
(4) In this section—
“trading activities” means activities carried on by the company in the course of, or for the purposes of, a trade being carried on by it;
“trading group activities” means activities carried on by a member of the group in the course of, or for the purposes of, a trade being carried on by any member of the group.
(5) For the purposes of determining whether a company is a trading company or a member of a trading group—
(a) the activities of the members of a group are to be treated as one business (with the result that activities are disregarded to the extent that they are intra-group activities), and
(b) a business carried on by a company in partnership with one or more other persons is to be treated as not being a trading activity.

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Source: https://www.legislation.gov.uk/ukpga/2003/1/section/312D (the official version)
Page: https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003/section-312D
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.