Commentary

D8.325 Qualifying issuing companies—trading activities requirement: excluded activities

Corporate tax
Corporate tax | Commentary

D8.325 Qualifying issuing companies—trading activities requirement: excluded activities

Corporate tax | Commentary

D8.325 Qualifying issuing companies—trading activities requirement: excluded activities

The following activities are excluded from being qualifying trades1:

  1.  

    (a)     dealing in land, commodities, futures, shares, securities or other financial instruments;

  2.  

    (b)     dealing in goods, except in the course of an ordinary trade of wholesale or retail distribution (see below);

  3.  

    (c)     banking, insurance, money-lending, debt-factoring, hire-purchase financing or other financial activities;

  4.  

    (d)     leasing, including letting ships on charter (although there is an exception in certain circumstances: see below) or other assets on hire, or receiving royalties or other licence fees (again, there is an exception: see below);

  5.  

    (e)     providing legal or accountancy services;

  6.  

    (f)     property development (as defined below);

  7.  

    (g)     farming or market gardening (as to what constitutes farming or market gardening generally, see B5.101);

  8.  

    (h)     holding, managing or occupying woodlands, any other forestry activities or timber production;

  9.  

    (i)     shipbuilding2;

  10.  

    (j)     producing coal (including the extraction of coal)3;

  11.  

    (k)     producing steel4;

  12.  

    (l)     operating or managing hotels or similar establishments or managing property used as a hotel or comparable establishment (see below);

  13.  

    (m)     operating or managing nursing homes or residential care homes, or managing property used as a nursing home or residential care home (see below); and

  14.  

    (n)     providing services or facilities for another business where, broadly, that business consists substantially of excluded facilities, and both businesses are controlled by the same person (see below).

These excluded activities are largely the same as those under the enterprise investment scheme, venture capital trust scheme and, indeed, for enterprise management incentives.

The exclusions under (i), (j) and

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