SCHEDULES
SCHEDULE 5Enterprise management incentives
Part 3Qualifying companies
15Meaning of “qualifying trade”
1
A trade is a qualifying trade if—
a
it is carried on wholly or mainly in the United Kingdom,
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.