Taxation of Chargeable Gains Act 1992 Schedule A1 paragraph 22B

Meaning of "trading group"

Paragraph 22B of Schedule A1 defines what constitutes a "trading group" for the purposes of the taper relief provisions in the Taxation of Chargeable Gains Act 1992.

• A trading group is a group of companies where the business of its members, taken together, consists wholly or mainly of trading activities.
• The definition requires looking at the activities of all group members collectively, rather than assessing each company in isolation.
• "Wholly or mainly" means that more than 50% of the group's combined activities must be trading in nature.
• This definition is relevant in determining whether shares in a company qualify for the more favourable business asset taper relief rates.