Section 236I: Trading requirement

Taxation of Chargeable Gains Act 1992 · 1992 c. 12View on legislation.gov.uk

Part VII: Other property, businesses, investments etc.

C meets the trading requirement if C is—

a trading company which is not a member of a group, or
the principal company of a trading group.

"Trading company" means a company carrying on trading activities whose activities do not include to a substantial extent activities other than trading activities.

"Trading group" means a group—

one or more of whose members carry on trading group activities, and
the activities of whose members, taken together, do not include to a substantial extent activities other than trading group activities.

In this section—

  • "trading activities" means activities carried on by the company in the course of, or for the purposes of, a trade being carried on by it;

  • "trading group activities" means activities carried on by a member of the group in the course of, or for the purposes of, a trade being carried on by any member of the group.

For the purposes of determining whether C is a trading company or the principal company of a trading group—

the activities of the members of a group are to be treated as one business (with the result that activities are disregarded to the extent that they are intra-group activities), and
a business carried on by a company in partnership with one or more other persons is to be treated as not being a trading activity or a trading group activity.

About this text

This legislation text comes from legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. These source and reuse terms cover the legislation text, not Remedy's commentary.

Reuse reviewed 21 August 2026 under Open Government Licence v3.0.