Income Tax Act 2007 Schedule 2 paragraph 52

Meaning of "excluded activities"

Paragraph 52 of Schedule 2 provides transitional rules for how "excluded activities" are defined in relation to shares issued before 7 March 2001, specifically adding oil extraction as an excluded activity for older share issues under the loss relief provisions.

• For shares issued before 7 March 2001, oil extraction activities are added to the list of excluded activities in section 192(1), as applied through section 137(7) for loss relief purposes.
• Oil extraction activities are defined by reference to Chapter 5 of Part 12 of ICTA.
• Shares issued between 6 April 1998 and 6 March 2001 that had EIS relief or relief under Schedule 5B to TCGA 1992 attributed to them immediately before 7 March 2001 are treated as if they were issued on or after 7 March 2001, meaning the oil extraction exclusion does not apply to them.
• The effect is that only shares issued before 6 April 1998 that lacked EIS or Schedule 5B relief remain subject to the additional oil extraction exclusion on an ongoing basis.