Income Tax Act 2007 section 308

Excluded activities: hotels and comparable establishments

Section 308 defines what counts as a hotel or comparable establishment for the purposes of excluded activities under the Venture Capital Trust (VCT) qualifying holdings rules, and clarifies when a person's activities fall within this exclusion.

• A "comparable establishment" means a guest house, hostel, or other facility whose main purpose is providing overnight accommodation, with or without catering
• Running a hotel or comparable establishment is an excluded activity for VCT qualifying holdings purposes
• The exclusion only applies where the person has an ownership interest in, or is in occupation of, the hotel or comparable establishment
• Simply providing services to a hotel without holding an interest in or occupying the property does not trigger the exclusion