Section 312D | Section 312B: the trading requirement ^F1

(1)For the purposes of section 312B, a company meets the trading requirement if—^F1

(a)it is a trading company which is not a member of a group, or^F1

(b)it is a member 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, and^F1

(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 a company is a trading company or a member 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), and^F1

(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.^F1