Income Tax Act 2007 section 198

Excluded activities: nursing homes and residential care homes

Section 198 defines what counts as a nursing home or residential care home for the purposes of excluded activities under the Enterprise Investment Scheme, and clarifies when operating such a home is treated as an excluded activity.

• A nursing home is an establishment existing wholly or mainly to provide nursing care for those suffering from sickness, injury or infirmity, or for women who are pregnant or have given birth.
• A residential care home is an establishment existing wholly or mainly to provide residential accommodation with board and personal care for people needing such care due to old age, disability, substance dependence, past illness, or mental disorder.
• Operating a nursing home or residential care home only counts as an excluded activity if the person carrying on the activity owns, has an interest in, or occupies the home in question.
• These definitions supplement the list of excluded activities that can prevent a company from qualifying under the Enterprise Investment Scheme.