Excluded activities: shipbuilding
In relation to EIS or SEIS shares issued on or after 6 April 2008 shipbuilding is an excluded activity. For the VCT scheme, it is an excluded activity in relation to a holding acquired on or after 6 April 2008 unless the holding was acquired out of funds raised by the VCT before that date.
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.