Income Tax Act 2007 section 189

Meaning of "qualifying trade"

Section 189 defines what counts as a "qualifying trade" for the purposes of the Enterprise Investment Scheme (EIS), setting out the two conditions a trade must meet to qualify.

• The trade must be carried on commercially with the genuine intention of making profits
• At no point during period B may the trade consist wholly, or to a substantial part, of excluded activities (as listed in sections 192 to 198)
• The word "trade" in this section and in sections 192 to 198 carries its ordinary meaning, not the extended statutory definition found elsewhere in the Act
• Both conditions must be satisfied throughout the relevant period for the trade to remain qualifying