Section 236I — Taxation of Chargeable Gains Act 1992: Trading requirement

Trading requirement 236I 1 C meets the trading requirement if C is—

a a trading company which is not a member of a group, or b the principal company 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 C is a trading company or the principal company 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 or a trading group activity.