Part 4: Income tax, corporation tax and capital gains tax Section 27: EIS, VCTs etc: excluded activities Background note
The purpose of these provisions is to exclude those activities that involve contracted arrangements for making reserve electricity generation capacity available, for example under a Capacity Market agreement or Short Term Operating Reserve contract. Also excluded are those activities that, having made such reserve capacity available, then utilise the capacity if and when called upon to generate electricity.
	These changes are being made alongside separate amendments to the EIS and VCTs which are aimed at ensuring compliance with State aid regulations. State aid approval for the Enterprise Investment Scheme and the Venture Capital Trusts was received on 12 October 2015.