Section 257HF — Income Tax Act 2007: Meaning of “new qualifying trade”

Meaning of “new qualifying trade” 257HF 1 For the purposes of this Part a qualifying trade carried on by the issuing company or a qualifying 90% subsidiary of that company (“ the relevant company ”) is a “new qualifying trade” if (and only if)—

a the trade does not begin to be carried on (whether by the relevant company or any other person) before the three year pre-investment period, and b at no time before the relevant company begins to carry on the trade was any other trade being carried on by the issuing company or by any company that was a 51% subsidiary of the issuing company at the time in question.

2 In this section— “ qualifying trade ” has the same meaning as in Part 5 (see sections 189 and 192 to 200); “ three year pre-investment period ” means the period of 3 years ending immediately before the day on which the relevant shares are issued.