Part 5Enterprise investment scheme
Chapter 3General requirements
Meaning of “qualifying business activity”
179Meaning of “qualifying business activity”
1
In this Part “qualifying business activity”, in relation to the issuing company, means—
a
activity A, or
b
activity B,
if it is carried on by the company or a qualifying 90% subsidiary of the company.
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2
Activity A is—
a
the carrying on of a qualifying trade which, on the date the relevant shares are issued, the company or a qualifying 90% subsidiary of the company is carrying on, or
b
the activity of preparing to carry on (or preparing to carry on and then carrying on) a qualifying trade—
i
which, on that date, is intended to be carried on F1... by the company or such a subsidiary, and
ii
which is begun to be carried on by the company or such a subsidiary within two years after that date.
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4
Activity B is the carrying on of research and development—
a
which, on the date the relevant shares are issued, the company or a qualifying 90% subsidiary of the company is carrying on, or which the company or such a subsidiary begins to carry on immediately afterwards, and
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6
In determining—
a
for the purposes of subsection (2)(b) when a qualifying trade is begun to be carried on by a qualifying 90% subsidiary of the company, or
b
for the purposes of subsection (4)(a) when research and development is begun to be carried on by such a subsidiary,
any carrying on of the trade or, as the case may be, the research and development by it before it became such a subsidiary is ignored.
7
References in subsection (2)(b)(i) or (4)(b) to a qualifying 90% subsidiary of the company include references to any existing or future company which will be such a subsidiary at any future time.