Part 14Income tax liability: miscellaneous rules

F1Chapter A1Remittance basis

F2Business investment relief

809VECommercial trades

(1)

Section 809VD is to be read in accordance with this section.

(2)

A reference to a “trade” also includes—

(a)

anything that is treated for corporation tax purposes as if it were a trade, and

(b)

a business carried on for generating income from land (as defined in section 207 of CTA 2009).

(3)

A trade is a “commercial trade” if it is conducted on a commercial basis and with a view to the realisation of profits.

(4)

The carrying on of activities of research and development from which it is intended that a commercial trade will be derived, or will benefit, is to be treated as the carrying on of a commercial trade.

(5)

But preparing to carry on activities within subsection (4) is not to be treated as the carrying on of a commercial trade.

F3(6)

A company which is a partner in a partnership is not to be regarded as carrying on a trade carried on by the partnership.