SCHEDULES
SCHEDULE 2Transitionals and savings
Part 8Venture capital trusts
Excluded activities: receipt of royalties and licence fees
84
For the purpose of determining whether shares or securities are to be regarded as comprised in a company's qualifying holdings, section 306 applies in relation to shares or securities issued before 6 April 2000 with the substitution for subsections (2) to (6) of—
2
If the requirement of subsection (3) or (4) is met, a trade is not to be regarded as consisting in the carrying on of excluded activities within section 303(1)(e) as a result only of its consisting to a substantial extent in the receiving of royalties of licence fees.
3
The requirement of this subsection is that—
a
the company carrying on the trade is engaged in—
i
the production of films, or
ii
the production of films and the distribution of films produced by it since the issue of the relevant holding, and
b
all royalties and licence fees received by it are in respect of—
i
films produced by it since the issue of the relevant holding,
ii
sound recordings in relation to such films, or
iii
other products arising from such films.
4
The requirement of this subsection is that—
a
the company carrying on the trade is engaged in research and development, and
b
all royalties and licence fees received by it are attributable to research and development which it has carried out.