Income Tax (Earnings and Pensions) Act 2003

Meaning of “qualifying trade”

This section has no associated Explanatory Notes

15(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.