Taxation of Chargeable Gains Act 1992 Schedule 7AD paragraph 12

Election to remain outside Schedule

Paragraphs 12 and 13 allow certain companies that were already involved in a venture capital investment partnership before the Schedule took effect to elect out of its provisions, and set out how and when such an election must be made.

• A company may elect that Schedule 7AD does not apply to it in relation to a particular partnership if it joined the partnership before the first period of account to which the Schedule would otherwise apply, or if it made its first capital contribution to the partnership before 17 April 2002.
• The election must be made by giving notice to an officer of HMRC.
• The deadline for making the election is the end of the period of two years after the end of the company's first accounting period beginning on or after 1 January 2002.
• This is a transitional provision designed to protect companies with pre-existing partnership arrangements from being caught by rules introduced by the Finance Act 2002.