# Income Tax Act 2007, Paragraph 90


(1) This paragraph applies in relation to the meaning of “company”, “shares” and “research and development” in Part 6 (see section 332).
(2) If—
(a) a company holds investments of any description in an entity immediately before 6 April 2007, and
(b) the entity is a company for any purposes of the Part 6 provisions but not for the corresponding purposes of the ICTA provisions,
any question whether the entity is a company for those purposes of the Part 6 provisions is to be determined in accordance with the ICTA provisions until such time as the company ceases to hold investments of that description.
(3) If—
(a) a company holds investments of any description in an entity immediately before 6 April 2007, and
(b) the investments are shares for any purposes of either of the following—
(i) the Part 6 provisions, and
(ii) the ICTA provisions,
but not for the corresponding purposes of the other set of provisions,
any question whether the investments are shares for those purposes of the Part 6 provisions is to be determined in accordance with the ICTA provisions until such time as the company ceases to hold investments of that description.
(4) In sub-paragraphs (2) and (3)—
“the ICTA provisions” means section 842AA of ICTA (VCT approvals) and Schedule 28B to that Act (qualifying holdings),
“the Part 6 provisions” means Chapter 3 of Part 6 (VCT approvals) and Chapter 4 of that Part (qualifying holdings).
(5) For the purpose of determining whether any shares or securities are to be regarded as comprised in a company's qualifying holdings, section 332 applies in relation to shares issued before 6 April 2000 with the substitution for the definition of “research and development” of—
““research and development” means any activity which is intended to result in a patentable invention (within the meaning of the Patents Act 1977) or in a computer program.”

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Source: https://www.legislation.gov.uk/ukpga/2007/3/schedule/2/paragraph/90 (the official version)
Page: https://openlegislation.uk/income-tax-act-2007/schedule-2/paragraph-90
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.