Part 5

Loan Relationships
Chapter 11

Other special kinds of company

Investment trusts' and venture capital trusts' creditor relationships

Venture capital trusts: profits or losses of a capital nature
396
1
Profits or losses of a capital nature arising to a venture capital trust from a creditor relationship may not be brought into account as credits or debits for the purposes of this Part.
2
For the purposes of this section “profits or losses of a capital nature” means profits or losses that—
a
are accounted for through the capital column of the income statement in accordance with the Statement of Recommended Practice, or
b
would have been so accounted for if the venture capital trust had been an investment trust and that Statement had been applied correctly.
3
In this section “the Statement of Recommended Practice” has the meaning given in section 395(3) (investment trusts: profits or losses of a capital nature).
4
The Treasury may by order amend the definition of “profits or losses of a capital nature” in subsection (2), so far as it applies in relation to a venture capital trust that prepares accounts in accordance with international accounting standards.
5
An order under subsection (4) may make—
a
different provision for different cases, and
b
incidental, supplemental, consequential and transitional provision and savings.