Income Tax Act 2007 section 83

Excluded activities: leasing of ships

Section 83 provides transitional rules for how the ship leasing exclusion under section 305 applies when determining whether shares or securities form part of a venture capital trust's qualifying holdings, with different modifications depending on when the shares or securities were issued.

• For shares or securities issued before 6 April 2007, the ship leasing rules in section 305 apply but without subsection (7), which means a later restriction is disregarded for these earlier issues.
• For shares or securities issued before 6 April 2004, additional modifications narrow the scope of the exclusion by replacing references to "offshore installations" with the more limited term "oil rigs".
• An "oil rig" is defined for these purposes as any ship that qualifies as an offshore installation under the Mineral Workings (Offshore Installations) Act 1971.
• These transitional provisions preserve the rules that applied at the time the shares or securities were originally issued, ensuring that investments made under earlier legislation are not retrospectively affected by later changes.