Finance Act 2008

Section 32

SCHEDULE 11 Venture capital schemes

Corporate Venturing Scheme

1 Part 3 of Schedule 15 to FA 2000 (CVS: the issuing company) is amended as follows.

2 In paragraph 26 (excluded activities)—

(a) in sub-paragraph (1), after paragraph (h) insert—

“(ha) shipbuilding;

(hb) producing coal;

(hc) producing steel;”, and

(b) in sub-paragraph (2), after the entry relating to paragraph 30 insert—

• “paragraph 30A (shipbuilding);

• paragraph 30B (producing coal);

• paragraph 30C (producing steel);”.

3 After paragraph 30 insert—

“Excluded activities: shipbuilding

30A In paragraph 26(1)(ha) “shipbuilding” has the same meaning as in the Framework on state aid to shipbuilding (2003/C 317/06), published in the Official Journal on 30 December 2003.

Excluded activities: producing coal

30B (1) This paragraph supplements paragraph 26(1)(hb).

(2) “Coal” has the meaning given by Article 2 of Council Regulation (EC) No. 1407/2002 (state aid to coal industry).

(3) The production of coal includes the extraction of it.

Excluded activities: producing steel

30C In paragraph 26(1)(hc) “steel” means any of the steel products listed in Annex 1 to the Guidelines on national regional aid (2006/C 54/08), published in the Official Journal on 4 March 2006.”

Enterprise Investment Scheme

4 Chapter 4 of Part 5 of ITA 2007 (EIS: the issuing company) is amended as follows.

5 In section 192 (meaning of “excluded activities”)—

(a) in subsection (1), after paragraph (i) insert—

“(ia) shipbuilding,

(ib) producing coal,

(ic) producing steel,”, and

(b) in subsection (2), after paragraph (d) insert—

“(da) section 196A (shipbuilding),

(db) section 196B (producing coal),

(dc) section 196C (producing steel),”.

6 After section 196 insert—

“196A Excluded activities: shipbuilding

In section 192(1)(ia) “shipbuilding” has the same meaning as in the Framework on state aid to shipbuilding (2003/C 317/06), published in the Official Journal on 30 December 2003.

196B Excluded activities: producing coal

(1) This section supplements section 192(1)(ib).

(2) “Coal” has the meaning given by Article 2 of Council Regulation (EC) No. 1407/2002 (state aid to coal industry).

(3) The production of coal includes the extraction of it.

196C Excluded activities: producing steel

In section 192(1)(ic) “steel” means any of the steel products listed in Annex 1 to the Guidelines on national regional aid (2006/C 54/08), published in the Official Journal on 4 March 2006.”

Venture capital trusts

7 Chapter 4 of Part 6 of ITA 2007 (VCTs: qualifying holdings) is amended as follows.

8 In section 303 (meaning of “excluded activities”)—

(a) in subsection (1), after paragraph (i) insert—

“(ia) shipbuilding,

(ib) producing coal,

(ic) producing steel,”, and

(b) in subsection (2), after paragraph (d) insert—

“(da) section 307A (shipbuilding),

(db) section 307B (producing coal),

(dc) section 307C (producing steel),”.

9 After section 307 insert—

“307A Excluded activities: shipbuilding

In section 303(1)(ia) “shipbuilding” has the same meaning as in the Framework on state aid to shipbuilding (2003/C 317/06), published in the Official Journal on 30 December 2003.

307B Excluded activities: producing coal

(1) This section supplements section 303(1)(ib).

(2) “Coal” has the meaning given by Article 2 of Council Regulation (EC) No. 1407/2002 (state aid to coal industry).

(3) The production of coal includes the extraction of it.

307C Excluded activities: producing steel

In section 303(1)(ic) “steel” means any of the steel products listed in Annex 1 to the Guidelines on national regional aid (2006/C 54/08), published in the Official Journal on 4 March 2006.”

Commencement

10 The amendments made by this Schedule are treated as having come into force on 6 April 2008.

11 But the amendments made by paragraphs 2, 3, 5 and 6 do not have effect in relation to shares issued before that date.

12 And the amendments made by paragraphs 8 and 9 do not have effect in relation to—

(a) a relevant holding issued before that date, or

(b) a relevant holding acquired by a company (“the investing company”) by means of the investment of protected money.

13 For the purposes of paragraph 12(b) “protected money” is—

(a) money raised by the issue before that date of shares in or securities of the investing company, or

(b) money derived from the investment of such money.