Income Tax Act 2007 section 310

Excluded activities: provision of services or facilities for another business

Section 310 explains when providing services or facilities to another business counts as an excluded activity for venture capital trust (VCT) purposes, based on the nature of the recipient business and common control between the two businesses.

• Providing services or facilities to another business is an excluded activity if that business wholly or substantially carries on activities already listed as excluded under section 303(1), and the same person holds a controlling interest in both businesses
• A person has a controlling interest in a company if they control it, or if the company is close and the person (or an associate who is a director) beneficially owns or controls more than 30% of the ordinary share capital, or if at least half the business could be regarded as belonging to them under the CTA 2010 ownership provisions
• For businesses not carried on by a company, a person has a controlling interest if they are entitled to at least half of the assets used for the business or at least half of the income arising from it
• The rights and powers of associates are attributed to the person they are associated with, and "business" is defined broadly to include any trade, profession or vocation