Income Tax Act 2007 section 85

Excluded activities: provision of services or facilities for another business

Section 85 modifies the rules in section 310 concerning excluded activities (specifically, providing services or facilities for another business) when determining whether shares or securities form part of a venture capital trust's qualifying holdings, with special transitional provisions for older share issues.

• For shares or securities issued before 6 April 2007, the word "business" in section 310 subsections (1) to (4) is replaced by "trade", and "trade" is redefined to include business, profession or vocation when carried on by a person other than a company.
• For shares or securities acquired using money raised before 17 March 1998, a narrower list of excluded activities applies — only paragraphs (a) to (f) rather than paragraphs (a) to (k).
• Money derived from reinvesting pre-17 March 1998 funds also benefits from this narrower excluded activities test.
• These transitional rules preserve the treatment that applied at the time the original investments were made, preventing retrospective disadvantage to earlier investors.