SCHEDULES

SCHEDULE 2Transitionals and savings

Part 8Venture capital trusts

Meaning of “company”, “shares” and “research and development” in Part 6

90

1

This paragraph applies in relation to the meaning of “company”, “shares” and “research and development” in Part 6 (see section 332).

2

If—

a

a company holds investments of any description in an entity immediately before 6 April 2007, and

b

the entity is a company for any purposes of the Part 6 provisions but not for the corresponding purposes of the ICTA provisions,

any question whether the entity is a company for those purposes of the Part 6 provisions is to be determined in accordance with the ICTA provisions until such time as the company ceases to hold investments of that description.

3

If—

a

a company holds investments of any description in an entity immediately before 6 April 2007, and

b

the investments are shares for any purposes of either of the following—

i

the Part 6 provisions, and

ii

the ICTA provisions,

but not for the corresponding purposes of the other set of provisions,

any question whether the investments are shares for those purposes of the Part 6 provisions is to be determined in accordance with the ICTA provisions until such time as the company ceases to hold investments of that description.

4

In sub-paragraphs (2) and (3)—

  • the ICTA provisions” means section 842AA of ICTA (VCT approvals) and Schedule 28B to that Act (qualifying holdings),

  • the Part 6 provisions” means Chapter 3 of Part 6 (VCT approvals) and Chapter 4 of that Part (qualifying holdings).

5

For the purpose of determining whether any shares or securities are to be regarded as comprised in a company's qualifying holdings, section 332 applies in relation to shares issued before 6 April 2000 with the substitution for the definition of “research and development” of—

research and development” means any activity which is intended to result in a patentable invention (within the meaning of the Patents Act 1977) or in a computer program.