Section 236I | Trading requirement F1
From legislation.gov.uk
(1)C meets the trading requirement if C is—F1
(a)a trading company which is not a member of a group, orF1
(b)the principal company of a trading group.F1
(2)“Trading company” means a company carrying on trading activities whose activities do not include to a substantial extent activities other than trading activities.F1
(3)“Trading group” means a group—F1
(a)one or more of whose members carry on trading group activities, andF1
(b)the activities of whose members, taken together, do not include to a substantial extent activities other than trading group activities.F1
(4)In this section—F1
“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—F1
(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), andF1
(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.F1