Income Tax Act 2007 section 192

Meaning of "excluded activities"

Section 192 defines the types of business activity that are treated as "excluded activities" for the purposes of the Enterprise Investment Scheme (EIS), and which therefore cannot qualify as a qualifying trade for EIS tax relief.

• A wide range of financial, property-related, and service activities are specifically excluded from qualifying for EIS relief, including dealing in land, commodities, shares or financial instruments, banking, insurance, money-lending, leasing, and providing legal or accountancy services.
• Primary industries and energy-related activities are also excluded, covering farming, market gardening, forestry, timber production, shipbuilding, coal production, steel production, and all forms of electricity generation, heat generation, energy production, and gas or fuel production.
• Operational management of hotels, comparable establishments, nursing homes, and residential care homes is excluded, as is property development and the receipt of royalties or licence fees.
• Further detailed rules on several of these excluded activities are set out in supplementary sections, including sections 193 to 199, which provide additional definitions and exceptions for areas such as wholesale and retail distribution, ship leasing, royalties, property development, shipbuilding, coal and steel production, hotels, care homes, and electricity export.