Income Tax Act 2007 section 809VE

Commercial trades

Section 809VE defines what counts as a "trade" and a "commercial trade" for the purposes of the business investment relief rules in section 809VD.

• The term "trade" is broadly defined to include activities treated as trades for corporation tax purposes and businesses generating income from land.
• A "commercial trade" is one conducted on a commercial basis with a view to making profits.
• Research and development activities intended to lead to, or benefit, a commercial trade are treated as a commercial trade — but merely preparing to carry on such R&D activities is not.
• A company that is a partner in a partnership is not regarded as carrying on the trade of that partnership.