# Taxation of Chargeable Gains Act 1992, Section 236I: Trading requirement

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

(1) C meets the trading requirement if C is—
(a) a trading company which is not a member of a group, or
(b) the principal company 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 C is a trading company or the principal company 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 or a trading group activity.

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Source: https://www.legislation.gov.uk/ukpga/1992/12/section/236I (the official version)
Page: https://openlegislation.uk/taxation-of-chargeable-gains-act-1992/section-236I
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.