Income Tax Act 2007 section 309A

Excluded activities: export of electricity

Section 309A defines what constitutes the export of electricity for the purposes of determining excluded activities under the Venture Capital Trust qualifying holdings rules.

• Electricity is considered "exported" when it is sent onto a distribution system or transmission system as defined by the Electricity Act 1989.
• Trades that consist substantially in the generation or export of electricity attracting a feed-in tariff under a UK government scheme (or similar overseas scheme) are excluded from being qualifying trades for VCT purposes.
• Electricity generated by anaerobic digestion or hydroelectric power is not caught by this exclusion, regardless of whether a feed-in tariff is received.
• Community interest companies, co-operative societies, community benefit societies and Northern Irish industrial and provident societies are exempt from this exclusion, regardless of how they generate their electricity.