Finance Act, 1984

Qualifying trades.

16.—(1) A trade is a qualifying trade if it complies with the requirements of this section.

(2) The trade must throughout the relevant period—

(a) consist wholly or mainly of either or both of the following trading operations (in this Chapter referred to as “qualifying trading operations”)—

(i) the manufacture of goods within the meaning of Chapter VI of Part I of the Finance Act, 1980 , or

(ii) the rendering of services in the course of a service undertaking in respect of which an employment grant was made by the Industrial Development Authority under section 2 of the Industrial Development (No. 2) Act, 1981 ,


(b) where the trade consists wholly or partly of the manufacture of goods referred to in paragraph (a) (i), be a trade in respect of which the company which carries it on has claimed and is entitled, or would, but for an insufficiency of profits, have claimed and been entitled, to relief from corporation tax under the provisions of the said Chapter VI:

Provided that a trade which during the relevant period consists partly of qualifying trading operations and partly of other trading operations shall be regarded for the purposes of this subsection as a trade which consists wholly or mainly of qualifying trading operations if, but only if, the total amount receivable in the relevant period from sales made and services rendered in the course of qualifying trading operations is not less than 75 per cent. of the total amount receivable by the company from all sales made and services rendered in the course of the trade in the relevant period.

(3) The trade must, during the relevant period, be conducted on a commercial basis and with a view to the realisation of profits.

(4) References in this section to a trade shall be construed without regard to so much of the definition of “trade” in section 1 (1) of the Income Tax Act, 1967 , as relates to adventures or concerns in the nature of trade.