Taxation of Chargeable Gains Act 1992 Schedule 7AC paragraph 27

Meaning of "trade"

Paragraph 27 of Schedule 7AC defines the meaning of "trade" for the purposes of the substantial shareholding exemption provisions in the schedule.

• A "trade" includes any trade, profession or vocation as understood under the Income Tax Acts.
• The activity must be conducted on a commercial basis — purely non-commercial or hobby activities do not qualify.
• There must be a view to the realisation of profits — the activity must be aimed at generating profit.
• Both conditions must be met: the activity must fall within the income tax meaning and be carried on commercially for profit.