Income Tax (Earnings and Pensions) Act 2003 section Schedule 5 paragraph 13

The trading activities requirement: single company

Section 13 sets out the trading activities requirement that a single company must meet, specifying that it must exist wholly for the purpose of carrying on one or more qualifying trades.

• A single company must exist wholly for the purpose of carrying on one or more qualifying trades, and must either be carrying on such a trade or preparing to do so.
• The company is permitted to hold and manage property used for its own qualifying trades without breaching the requirement.
• Activities that have no significant effect on the extent of the company's operations, other than in relation to incidental matters, are also disregarded.
• The meaning of "qualifying trade" is defined in paragraph 15, and paragraphs 16 to 23 set out the types of activities that are excluded from being qualifying trades.