Income Tax Act 2007 section 307B

Excluded activities: producing coal

Section 307B defines what is meant by "producing coal" for the purpose of identifying excluded activities that disqualify a company from holding qualifying investments within a venture capital trust.

• Producing coal is an excluded activity for venture capital trust qualifying holdings under section 303
• "Coal" is defined by reference to Article 2 of Council Regulation (EC) No. 1407/2002, which deals with state aid to the coal industry
• The production of coal explicitly includes the extraction of coal
• A company whose trade consists of producing coal will not meet the qualifying holdings requirements for VCT purposes