SCHEDULES
F1SCHEDULE 7ADGains of insurance company from venture capital investment partnership
Interpretation
C110
1
In this Schedule—
“insurance company”, “long-term business” and “long-term insurance fund” have the same meaning as in Chapter 1 of Part 12 of the Taxes Act (see section 431(2) of that Act);
“limited partner” means—
- a
a person carrying on a business as a limited partner in a partnership registered under the Limited Partnership Act 1907, or
- b
a person carrying on a business jointly with others who, under the law of a country or territory outside the United Kingdom, is not entitled to take part in the management of the business and is not liable beyond a certain limit for debts or obligations incurred for the purposes of the business;
- a
“relevant assets” has the meaning given by paragraph 3(3);
“securities” has the same meaning as in section 132 and also includes any debentures;
“unquoted” and “quoted”, in relation to shares or securities, refer to listing on a recognised stock exchange.
2
References in this Schedule to the partnership’s accounts are to accounts drawn up in accordance with generally accepted accounting practice.
If no such accounts are drawn up, the references to the treatment of any matter, or the amounts shown, in the accounts of the partnership are to what would have appeared if accounts had been drawn up in accordance with generally accepted accounting practice.
3
References in this Schedule to capital contributed to a limited partnership include amounts purporting to be provided by way of loan if—
a
the loan carries no interest,
b
all the limited partners are required to make such loans, and
c
the loans are accounted for as partners' capital, or partners' equity, in the accounts of the partnership.
4
For the purposes of this Schedule the assets of—
a
a Scottish partnership, or
b
a partnership under the law of any other country or territory under which assets of a partnership are regarded as held by or on behalf of the partnership as such,
shall be treated as held by the members of the partnership in the proportions in which they are entitled to share in the profits of the partnership.
References in this Schedule to the company’s interest in, or share of, the partnership’s assets shall be construed accordingly.
Sch. 7AD inserted (24.7.2002) by Finance Act 2002 (c. 23), s. 85(2), Sch. 31