Part 6

Venture capital trusts
Chapter 4

Qualifying holdings

Definitions

Meaning of “qualifying trade”
300
1
For the purposes of this Chapter, a trade is a qualifying trade if—
a
it is conducted on a commercial basis and with a view to the realisation of profits, and
b
it does not consist wholly or as to a substantial part in the carrying on of excluded activities (see sections 303 to 310).
2
The carrying on of any activities of research and development from which it is intended—
a
that a trade will be derived which will be a qualifying trade, or
b
that a trade will benefit which is or will be a qualifying trade,
is to be treated 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
References in this section to a trade are to be read without regard to the definition of “trade” in section 989.
S. 300(2)(a)(b) substituted (6.4.2011) (with effect in accordance with Sch. 2 paras. 7(3), 8 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 2 para. 2(11); S.I. 2011/662, art. 2