SCHEDULES

SCHEDULE 5Enterprise management incentives

Part 3Qualifying companies

The trading activities requirement: single company

13

1

The trading activities requirement in the case of a single company is that the company—

a

disregarding any purposes within sub-paragraph (2), exists wholly for the purpose of carrying on one or more qualifying trades, and

b

is carrying on a qualifying trade or preparing to do so.

2

The purposes referred to in sub-paragraph (1)(a) are—

a

the holding and managing of property used by the company for one or more qualifying trades carried on by it, and

b

any purposes having no significant effect (other than in relation to incidental matters) on the extent of the company’s activities.

3

This paragraph is supplemented by paragraph 15 (meaning of “qualifying trade”) read with paragraphs 16 to 23 (excluded activities).