13(1)The trading activities requirement in the case of a single company is that the company—U.K.
(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).