Income Tax Act 2007 Schedule 2 paragraph 81

Meaning of "excluded activities"

Paragraph 81 provides a transitional rule that disapplies certain excluded activity restrictions for venture capital trust qualifying holdings where the underlying investment was funded from money raised before 17 March 1998.

• Certain excluded activities listed in sections 303(1)(g) to (k) and sections 307 to 309 do not apply when assessing whether shares or securities form part of a VCT's qualifying holdings
• This exemption only covers shares or securities acquired before 6 April 2018 by the investee company
• The investment must have been made using money raised by the VCT through issuing its own shares or securities before 17 March 1998
• The exemption also extends to money derived from the reinvestment of those pre-17 March 1998 funds