Section 312D — Finance Act 2014: Section 312B: the trading requirement

Section 312B: the trading requirement 312D 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.