Taxation of Chargeable Gains Act 1992

[F1 236I Trading requirement U.K.

(1) C meets the trading requirement if C is—

(a) a trading company which is not a member of a group, or

(b) the principal company of a trading group.

(2) “Trading company” means a company carrying on trading activities whose activities do not include to a substantial extent activities other than trading activities.

(3) “Trading group” means a group—

(a) one or more of whose members carry on trading group activities, and

(b) the activities of whose members, taken together, do not include to a substantial extent activities other than trading group activities.

(4) In this section—

• “trading activities” means activities carried on by the company in the course of, or for the purposes of, a trade being carried on by it;

• “trading group activities” means activities carried on by a member of the group in the course of, or for the purposes of, a trade being carried on by any member of the group.

(5) For the purposes of determining whether C is a trading company or the principal company of a trading group—

(a) the activities of the members of a group are to be treated as one business (with the result that activities are disregarded to the extent that they are intra-group activities), and

(b) a business carried on by a company in partnership with one or more other persons is to be treated as not being a trading activity or a trading group activity.]

Textual Amendments

F1 Ss. 236H-236U and cross-heading inserted (with effect in accordance with Sch. 37 para. 2 of the amending Act) by Finance Act 2014 (c. 26), Sch. 37 para. 1 (with Sch. 37 paras. 3, 4)

Modifications etc. (not altering text)

C1 S. 236I applied (with modifications) by Inheritance Tax Act 1984 (c. 51), s. 75A(3) (as inserted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 37 para. 14(1)(2))

C2 S. 236I applied (with modifications) by Inheritance Tax Act 1984 (c. 51), s. 86(3A)(a) (as inserted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 37 para. 15(3)(4))

C3 S. 236I applied (with modifications) by Inheritance Tax Act 1984 (c. 51), s. 13A(2) (as inserted (with effect in accordance with Sch. 37 para. 10(2) of the amending Act) by Finance Act 2014 (c. 26), Sch. 37 para. 10(1))

C4 S. 236I applied (with modifications) by Inheritance Tax Act 1984 (c. 51), s. 28A(2) (as inserted (with effect in accordance with Sch. 37 para. 11(2) of the amending Act) by Finance Act 2014 (c. 26), Sch. 37 para. 11(1))