SCHEDULES

SCHEDULE 2Transitionals and savings

Part 8Venture capital trusts

Conditions relating to value of investments

65

1

Sub-paragraph (2) applies if any question arises which—

a

would otherwise fall to be determined in accordance with section 278, and

b

is a question whether, in a case where a company (“company A”) holds investments in a company (“company B”) immediately before 6 April 2007, the 15% holding condition is met if there is an addition to the holding on or after that date.

2

Any such question is to be determined in accordance with—

a

section 842AA(11)(c) of ICTA, and

b

section 842(3) and (4) of that Act as applied by that provision,

until such time as company A ceases to hold investments in company B.

3

Except in a case to which sub-paragraph (2) applies, section 278(5) applies in relation to investments issued before 17 April 2002 with the following modifications—

a

the insertion after “reconstruction”, in the first place where it occurs, of “or amalgamation”, and

b

the omission of the words from “In this subsection” to the end.