Part VII Other property, businesses, investments etc.
F1Employee-ownership trusts
C2C1C3C4236ITrading requirement
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.
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)