[F1Meaning of “trading group"U.K.
Textual Amendments
F1Sch. 7AC inserted (with effect in accordance with s. 44(3)(4) of the amending Act) by Finance Act 2002 (c. 23), Sch. 8 para. 1
21(1)In this Schedule “trading group” means a group—U.K.
(a)one or more of whose members carry on trading activities, and
(b)the activities of whose members, taken together, do not include to a substantial extent activities other than trading activities.
(2)For the purposes of sub-paragraph (1) “trading activities” means activities carried on by a member of the group—
(a)in the course of, or for the purposes of, a trade being carried on by any member of the group,
(b)for the purposes of a trade that any member of the group is preparing to carry on,
(c)with a view to any member of the group acquiring or starting to carry on a trade, or
(d)with a view to any member of the group acquiring a significant interest in the share capital of another company that—
(i)is a trading company or the holding company of a trading group or trading subgroup, and
(ii)is not a member of the same group as the acquiring company.
(3)Activities do not qualify as trading activities under sub-paragraph (2)(c) or (d) unless the acquisition is made, or (as the case may be) the group member in question starts to carry on the trade, as soon as is reasonably practicable in the circumstances.
(4)The reference in sub-paragraph (2)(d) to the acquisition of a significant interest in the share capital of another company is to an acquisition of ordinary share capital in the other company—
(a)such as would make that company a member of the same group as the acquiring company, or
(b)such as would give the acquiring company a qualifying shareholding in a joint venture company without making the joint venture company a member of the same group as the acquiring company.
(5)For the purposes of this paragraph the activities of the members of the group shall be treated as one business (with the result that activities are disregarded to the extent that they are intra-group activities).]