What power does section 311 of the Income Tax Act 2007 grant the Treasury?

Section 311 grants the Treasury a delegated power to amend the provisions of this Chapter relating to venture capital trust relief by statutory order. This enables the Treasury to update detailed VCT rules through a statutory instrument rather than requiring a new Act of Parliament each time changes are needed.

Why does the Treasury have power to amend venture capital trust provisions by order?

The power exists as a practical mechanism allowing the Treasury to keep venture capital trust relief rules up to date. If conditions, limits, or policy objectives change, adjustments can be made through statutory instruments rather than the full parliamentary legislative process, ensuring the provisions remain current and effective.

What is the legislative origin of section 311 of the Income Tax Act 2007?

Section 311 is derived from paragraph 12 of Schedule 28B to the Income and Corporation Taxes Act 1988 (ICTA), which served the same function under earlier United Kingdom tax legislation. The provision was subsequently amended by the Finance (No. 2) Act 2015, Schedule 6, paragraph 14.

How would the Treasury use section 311 to change the VCT annual investment limit?

The Treasury would use its power under section 311 to make an order amending the relevant investment limit within the Chapter. The order would be laid before Parliament as a statutory instrument and, once approved, the updated limit would take effect for the relevant tax year without requiring a new Finance Act.

Income Tax Act 2007 section 311

Power to amend Chapter

Section 311 grants the Treasury the power to make orders amending the provisions within this Chapter relating to venture capital trust relief.

The Treasury may amend the provisions of this Chapter by statutory order.
This power allows the rules governing venture capital trust relief to be updated without requiring primary legislation.
The section is derived from paragraph 12 of Schedule 28B to the Income and Corporation Taxes Act 1988.
The section was amended by the Finance (No. 2) Act 2015, Schedule 6, paragraph 14.

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