Section 300 — Income Tax Act 2007: Meaning of “qualifying trade”

Meaning of “qualifying trade” 300 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.