[F1[F2Meaning of “trading company”U.K.
Textual Amendments
F1Sch. A1 inserted (with effect in accordance with s. 121(4) of the amending Act) by Finance Act 1998 (c. 36), s. 121(2), Sch. 20
F2Sch. A1 para. 22A and cross-heading inserted (with effect in accordance with Sch. 10 para. 9(3) of the amending Act) by Finance Act 2002 (c. 23), Sch. 10 para. 9(2)
22A(1)In this Schedule “trading company” means a company carrying on trading activities whose activities do not include to a substantial extent activities other than trading activities.U.K.
(2)For the purposes of sub-paragraph (1) above “trading activities” means activities carried on by the company—
(a)in the course of, or for the purposes of, a trade being carried on by it,
(b)for the purposes of a trade that it is preparing to carry on,
(c)with a view to its acquiring or starting to carry on a trade, or
(d)with a view to its 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, and
(ii)if the acquiring company is a member of a group of companies, is not a member of that group.
(3)Activities do not qualify as trading activities under sub-paragraph (2)(c) or (d) above unless the acquisition is made, or (as the case may be) the company starts to carry on the trade, as soon as is reasonably practicable in the circumstances.
(4)The reference in sub-paragraph (2)(d) above 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 51% subsidiary of the acquiring company, or
(b)such as would give the acquiring company a qualifying shareholding in a joint venture company without making the two companies members of the same group of companies.]]