300Meaning of “qualifying trade”U.K.
(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—
(i)will be a qualifying trade, and
(ii)will be carried on wholly or mainly in the United Kingdom, or
(b)that a trade will benefit which—
(i)is or will be a qualifying trade, and
(ii)is or will be carried on wholly or mainly in the United Kingdom,
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.