Income Tax Act 2007 section 309

Excluded activities: nursing homes and residential care homes

Section 309 defines what constitutes a nursing home and a residential care home for the purposes of the excluded activities rules that apply to qualifying holdings of venture capital trusts.

• A nursing home is an establishment that exists wholly or mainly to provide nursing care for those who are sick, injured or infirm, or for women who are pregnant or have given birth.
• A residential care home is an establishment that exists wholly or mainly to provide residential accommodation with board and personal care for those needing such care due to old age, disability, substance dependence, past illness or mental disorder.
• Operating a nursing home or residential care home is treated as an excluded activity only if the person carrying on the activity owns, has an interest in, or occupies the home in question.
• If a person has no estate, interest or occupation in the home, their activities are not caught by the excluded activities rule for nursing and residential care homes.