Section 300 | Meaning of “qualifying trade”

(1)For the purposes of this Chapter, a trade is a qualifying trade if—

(a)it is conducted on a commercial basis and with a view to the realisation of profits, and

(b)it does not consist wholly or as to a substantial part in the carrying on of excluded activities (see sections 303 to 310).

(2)The carrying on of any activities of research and development from which it is intended—

(a)that a trade will be derived which will be a qualifying trade, or

(b)that a trade will benefit which is or will be a qualifying trade,

is to be treated as the carrying on of a qualifying trade.

(3)But preparing to carry on such activities does not count as preparing to carry on a qualifying trade.

(4)References in this section to a trade are to be read without regard to the definition of “trade” in section 989.