(1)In this Part “qualifying business activity”, in relation to the issuing company, means—
(a)activity A, or
(b)activity B,
if it is carried on by the company or a qualifying 90% subsidiary of the company.
F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2)Activity A is—
(a)the carrying on of a qualifying trade which, on the date the relevant shares are issued, the company or a qualifying 90% subsidiary of the company is carrying on, or
(b)the activity of preparing to carry on (or preparing to carry on and then carrying on) a qualifying trade—
(i)which, on that date, is intended to be carried on F2... by the company or such a subsidiary, and
(ii)which is begun to be carried on by the company or such a subsidiary within two years after that date.
F3(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4)Activity B is the carrying on of research and development—
(a)which, on the date the relevant shares are issued, the company or a qualifying 90% subsidiary of the company is carrying on, or which the company or such a subsidiary begins to carry on immediately afterwards, and
(b)from which, on that date, it is intended—
(i)that a qualifying trade which the company or such a subsidiary will carry on F4... will be derived, or
(ii)that a qualifying trade which the company or such a subsidiary is carrying on, or will carry on, F5... will benefit.
F6(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6)In determining—
(a)for the purposes of subsection (2)(b) when a qualifying trade is begun to be carried on by a qualifying 90% subsidiary of the company, or
(b)for the purposes of subsection (4)(a) when research and development is begun to be carried on by such a subsidiary,
any carrying on of the trade or, as the case may be, the research and development by it before it became such a subsidiary is ignored.
(7)References in subsection (2)(b)(i) or (4)(b) to a qualifying 90% subsidiary of the company include references to any existing or future company which will be such a subsidiary at any future time.
Textual Amendments
F1Words in s. 179(1) omitted (17.7.2012) (with effect in accordance with Sch. 7 para. 22 of the amending Act) by virtue of Finance Act 2012 (c. 14), Sch. 7 para. 10
F2Words in s. 179(2)(b)(i) omitted (6.4.2011) (with effect in accordance with Sch. 2 paras. 7(1), 8 of the amending Act) by virtue of Finance (No. 3) Act 2010 (c. 33), Sch. 2 para. 1(2)(a); S.I. 2011/662, art. 2
F3S. 179(3) omitted (6.4.2011) (with effect in accordance with Sch. 2 paras. 7(1), 8 of the amending Act) by virtue of Finance (No. 3) Act 2010 (c. 33), Sch. 2 para. 1(2)(b); S.I. 2011/662, art. 2
F4Words in s. 179(4)(b)(i) omitted (6.4.2011) (with effect in accordance with Sch. 2 paras. 7(1), 8 of the amending Act) by virtue of Finance (No. 3) Act 2010 (c. 33), Sch. 2 para. 1(2)(c); S.I. 2011/662, art. 2
F5Words in s. 179(4)(b)(ii) omitted (6.4.2011) (with effect in accordance with Sch. 2 paras. 7(1), 8 of the amending Act) by virtue of Finance (No. 3) Act 2010 (c. 33), Sch. 2 para. 1(2)(c); S.I. 2011/662, art. 2
F6S. 179(5) omitted (6.4.2011) (with effect in accordance with Sch. 2 paras. 7(1), 8 of the amending Act) by virtue of Finance (No. 3) Act 2010 (c. 33), Sch. 2 para. 1(2)(d); S.I. 2011/662, art. 2