SCHEDULES

SCHEDULE 12EIS and VCTs: meaning of qualifying trade

Definition of excluded activities for VCTs

4(1)In sub-paragraph (1) of paragraph 5 of that Schedule (interpretation of paragraph 4), after the definition of “film” there shall be inserted the following definition—

  • ““nursing home” means any establishment which exists wholly or mainly for the provision of nursing care for persons suffering from sickness, injury or infirmity or for women who are pregnant or have given birth to children;”.

(2)In that sub-paragraph, after the definition of “pleasure craft” there shall be inserted the following definition—

  • ““property development” means the development of land—

    (a)

    by a company which has, or at any time has had, an interest in the land, and

    (b)

    with the sole or main object of realising a gain from the disposal of an interest in the land when it is developed;”.

(3)In that sub-paragraph, before the word “and” at the end of the definition of “research and development” there shall be inserted the following definition—

  • ““residential care home” means any establishment which exists wholly or mainly for the provision of residential accommodation, together with board and personal care, for persons in need of personal care by reason of old age, mental or physical disabilities, past or present dependence on alcohol or drugs or any past illnesses or past or present mental disorders;”.

(4)In sub-paragraph (5) of that paragraph (definitions for the purposes of that paragraph), after the definition of “director” there shall be inserted the following definition—

  • ““interest in land” means (subject to sub-paragraph (6) below)—

    (a)

    any estate, interest or right in or over land, including any right affecting the use or disposition of land; or

    (b)

    any right to obtain such an estate, interest or right from another which is conditional on the other’s ability to grant the estate, interest or right.”

(5)After that sub-paragraph there shall be inserted the following sub-paragraphs—

“(6)References in paragraph 4 above, in relation to an hotel, to a comparable establishment are references to a guest house, hostel or other establishment the main purpose of maintaining which is the provision of facilities for overnight accommodation (whether with or without catering services).

(7)References in this paragraph to an interest in land do not include references to—

(a)the interest of a creditor (other than a creditor in respect of a rentcharge) whose debt is secured by way of mortgage, an agreement for a mortgage or a charge of any kind over land; or

(b)in the case of land in Scotland, the interest of a creditor in a charge or security of any kind over land.”