Section 396 — Corporation Tax Act 2009: Venture capital trusts: profits or losses of a capital nature

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.