Income Tax Act 2007 section 313

Interpretation of Chapter

Section 313 defines key terms and provides interpretive rules used throughout the chapter on qualifying holdings for Venture Capital Trusts.

• Key terms — "the investing company", "the relevant company", and "the relevant holding" — are all defined in section 286(1), and references to issuing securities in relation to unsecured loans mean the making of the loan itself.
• When determining whether a person controls a company for the purposes of the control and independence requirement and certain excluded activities provisions, the close company control tests in sections 450 and 451 of CTA 2010 apply, but with specified modifications.
• The modifications require you to ignore fixed-rate non-voting preference shares, loan creditor rights, and dividend rights on eligible shares held by the investing company when assessing control.
• The concept of "connected persons" throughout this chapter (except for section 312A and the definition of "independent expert" in section 331A(10)) also uses the modified control test from sections 450 and 451 of CTA 2010.