[F1312DSection 312B: the trading requirementU.K.
(1)For the purposes of section 312B, a company meets the trading requirement if—
(a)it is a trading company which is not a member of a group, or
(b)it is a member 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 a company is a trading company or a member 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.]
Textual Amendments
F1Pt. 4 Ch. 10A inserted (with effect in accordance with Sch. 37 para. 8 of the amending Act) by Finance Act 2014 (c. 26), Sch. 37 para. 5