Income Tax Act 2007 section 198A

Excluded activities: export of electricity

Section 198A defines what constitutes the export of electricity for the purposes of the Enterprise Investment Scheme's excluded activities rules.

• The export of electricity is an excluded activity under the EIS rules, meaning companies whose trade consists of this activity cannot qualify for EIS relief.
• Electricity is considered "exported" when it is fed onto a distribution system or a transmission system as defined by the Electricity Act 1989.
• This section supplements the main list of excluded activities in section 192(1)(ka) of the Income Tax Act 2007.
• Several subsections of this provision have been repealed or amended by Finance Acts 2015 and 2016, narrowing the remaining operative rules to the core definition of electricity export.