Section 298 — Corporation Tax Act 2009: Meaning of trade and purposes of trade

Meaning of trade and purposes of trade 298 1 For the purposes of this Part a company is taken to be a party to a creditor relationship for the purposes of a trade it carries on only if it is a party to the relationship in the course of activities forming an integral part of the trade.

2 For the meaning of “creditor relationship”, see section 302(5).

3 For the purposes of this Part activities carried on by a company in the course of—

a any mutual trading, or b any mutual insurance or other mutual business which is not life assurance business, ... c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . are treated as not constituting the whole or any part of a trade.

4 Subsection (3) applies for the purposes of any other relevant enactment as it applies for the purposes of this Part.

5 In subsection (4) “ relevant enactment ” means so much of any enactment as contains provision by reference to which amounts are to be brought into account for the purposes of this Part.

6 In the case of activities carried on by a company in the course of any basic life assurance and general annuity business, provision corresponding to that made by subsection (3) is made by section 88 of FA 2012 for the purpose of applying the I - E rules.