Is royalty income trade or non-trade income? The significance is which brought forward losses can be offset against he profits.
A company charges trademark royalties to various group companies that trade under the brand name. My understanding is that they do develop, maintain, protect and enhance the brand (marketing, legal etc), so the royalties should be a trade receipt. If we argued that they were non-trade items, it would imply that they do not actively do anything to develop, maintain, protect and enhance the brand, which the calls into question whether the economically own it at all, whether the level of royalty is too much compared to that which would be expected by a silent investor, etc (thinking of TP / BEPS which would concern the paying companies).
I feel sure that this must be discussed somewhere in the HMRC manuals or on here, but can't find anything.