VCM3110 | Excluded activities: shipbuilding

ITA07/S192(1)(ia);ITA07/S303(1)(ia)

Shipbuilding is an excluded activity in relation to the EIS and SEIS.

For the VCT scheme, shipbuilding is an excluded activity for all investments made on or after 6 April 2018.

However, VCT holdings acquired before 6 April 2018 using certain ‘protected monies’ – holdings acquired using monies raised, or derived from monies raised, by the VCT before 6 April 2008 – are not subject to this exclusion (see VCM55020).

ITA07/S196A; ITA07/S307A

Shipbuilding is defined as the building of ‘self-propelled seagoing commercial vessels’. To meet that definition vessels have to have permanent propulsion and ‘all the characteristics of self navigation on the high seas’.

Vessels of less than 100 gross tonnes (or tugs of less than 365KW) are not covered by this exclusion. And because they are not seagoing vessels, neither are vessels built for use on inland waterways. Military vessels and large private yachts are also not excluded as they are not commercial vessels.

Ship repairing or conversion is not regarded as shipbuilding, so those activities are not excluded.