Income Tax Act 2007 section 257MQ

Meaning of "excluded activity"

Section 257MQ defines the types of business activity that are treated as "excluded activities" for the purposes of Social Investment Tax Relief, and which therefore cannot qualify for relief under the scheme.

• A wide range of financial activities are excluded, including dealing in land, commodities, shares or other financial instruments, as well as banking, insurance, money-lending, debt-factoring and hire-purchase financing.
• Energy-related activities are excluded, covering the generation, export or making available of electricity generating capacity, generating heat, producing gas or fuel, and generating any other form of energy.
• Other excluded activities include leasing, receiving royalties or licence fees, operating or managing nursing homes or residential care homes, property development, certain fishery, aquaculture and agricultural production, and road freight transport for hire or reward.
• Providing services or facilities to another business is also excluded where that other business substantially carries on any of the excluded activities and the same person holds a controlling interest in both businesses.