Income Tax Act 2007 section 196B

Excluded activities: producing coal

Section 196B defines what counts as coal production for the purposes of activities excluded from the Enterprise Investment Scheme.

• Producing coal is an excluded activity under the Enterprise Investment Scheme, meaning companies engaged in it cannot qualify for EIS relief.
• The definition of "coal" follows the EU definition set out in Article 2 of Council Regulation (EC) No. 1407/2002, which deals with state aid to the coal industry.
• The production of coal is broadly defined and specifically includes the extraction of coal, not just its processing or manufacture.
• This section works alongside section 192, which lists the full range of excluded activities that disqualify a company from EIS eligibility.