ANNEX 1:: MINOR CHANGES IN THE LAW MADE BY THE BILL The Change in section 181(7)
Section 293(3D) of ICTA says (emphasis added):
“Activities of a company or of any of its subsidiaries shall be disregarded for the purposes of subsections (3A) to (3C) above to the extent that they consist in—(a)…(b)the holding and managing of property used by the company or any of its subsidiaries for the purposes of—(i)research and development from which it is intended that a qualifying trade to be carried on by the company or any of its subsidiaries will be derived; or …”
Consistent with the interpretation of section 289(2)(b)(ii) of ICTA, “any of its subsidiaries” in section 293(3D) of that Act applies to a subsidiary that is acquired after the date the shares are issued.
The provision is rewritten in section 181(6)(c) and (d) (with “group company” instead of “any of its subsidiaries” and again with Change 41 which extends the R&D in the frame to R&D that will benefit a qualifying trade).
Section 181(7) of this Act provides an interpretation of “group company”, (as defined in section 257(1)), which makes it clear that here this includes future group companies:
“Any reference in subsection (6)(d) (i) or (ii) to a group company includes a reference to any existing or future company which will be a group company at any future time.”