Income Tax Act 2007 section 196A

Excluded activities: shipbuilding

Section 196A defines the meaning of "shipbuilding" for the purposes of the excluded activities rules under the Enterprise Investment Scheme.

• Shipbuilding is listed as an excluded activity for the purposes of the Enterprise Investment Scheme (EIS).
• The definition of shipbuilding is taken directly from the EU Framework on state aid to shipbuilding (2003/C 317/06), published on 30 December 2003.
• References in the Framework to building in the European Union are to be read as also including building in the United Kingdom.
• Companies whose trade consists of shipbuilding, as so defined, cannot qualify for EIS investment relief.