Finance Act 1998

Definition of excluded activities for the enterprise investment scheme

2 (1) In subsection (5) of section 298 of the Taxes Act 1988 (interpretation of section 297), after the definition of “film” there shall be inserted the following definition—

• ““nursing home” means any establishment which exists wholly or mainly for the provision of nursing care for persons suffering from sickness, injury or infirmity or for women who are pregnant or have given birth to children;”.

(2) In that subsection, before the word “and” at the end of the definition of “pleasure craft” there shall be inserted the following definitions—

• ““property development” means the development of land—

  (a)

  by a company which has, or at any time has had, an interest in the land, and

  (b)

  with the sole or main object of realising a gain from the disposal of an interest in the land when it is developed;

• “residential care home” means any establishment which exists wholly or mainly for the provision of residential accommodation, together with board and personal care, for persons in need of personal care by reason of old age, mental or physical disabilities, past or present dependence on alcohol or drugs or any past illnesses or past or present mental disorders;”.

(3) After that subsection there shall be inserted the following subsections—

“(5A) References in this section, in relation to an hotel, to a comparable establishment are references to a guest house, hostel or other establishment the main purpose of maintaining which is the provision of facilities for overnight accommodation (whether with or without catering services).

(5B) Subject to subsection (5C) below, the reference in subsection (5) above to an interest in land is a reference to—

(a) any estate, interest or right in or over land, including any right affecting the use or disposition of land; or

(b) any right to obtain such an estate, interest or right from another which is conditional on the other’s ability to grant the estate, interest or right.

(5C) References in this section to an interest in land do not include references to—

(a) the interest of a creditor (other than a creditor in respect of a rentcharge) whose debt is secured by way of mortgage, an agreement for a mortgage or a charge of any kind over land; or

(b) in the case of land in Scotland, the interest of a creditor in a charge or security of any kind over land.”