ANNEX 1:: MINOR CHANGES IN THE LAW MADE BY THE BILL Companies invested in
It seems clear from section 842AA(11)(a) of ICTA (read with section 842(4) of ICTA) that references in section 842AA to a holding in a company contemplate that “company” and “shares” use the TCGA definition. And similarly from section 842AA(11)(c) it seems clear that references in section 842AA to investments of any description, in a company, contemplate that “company” and “shares” use the TCGA definition.
The two concepts in section 842AA of holding in a company and investments of any description relate to things in which the investing company that is, or may be, a venture capital trust has an interest. It would be reasonable from that context to suppose that “company” and “shares” in Schedule 28B to ICTA (venture capital trusts: meaning of “qualifying holding” in section 842AA) also use the TCGA definition.
The general use of the TCGA definition is probably one of the intended effects of section 842AA(11)(c) of ICTA but, as noted earlier, that provision is difficult to follow. The definition of “company” and “shares” in paragraph 17 of Schedule 33 to FA 2002 (Venture capital trusts winding up and mergers etc) appears to have proceeded on the basis that Schedule 28B of ICTA uses the TCGA definition.