15(1)A trade is a qualifying trade if—U.K.
F1(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b)it is conducted on a commercial basis and with a view to the realisation of profits, and
(c)it does not consist (either wholly or as to a substantial part) in the carrying on of excluded activities.
(2)The carrying on of activities of research and development from which it is intended that a connected qualifying trade will be derived or benefit counts 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)In sub-paragraph (2) “connected qualifying trade” means a qualifying trade carried on—
(a)by the company carrying on the activities of research and development, or
(b)if that company is a member of a group, by any other member of the group.
Textual Amendments
F1Sch. 5 para. 15(1)(a) omitted (with effect in accordance with s. 6(5) of the amending Act) by virtue of Finance (No. 3) Act 2010 (c. 33), s. 6(4)