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257DI | The gross assets requirement |
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(1) | In the case of relevant shares issued by a single company, the value |
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of the company’s assets must not exceed £200,000 immediately |
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before the relevant shares are issued. |
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(2) | In the case of relevant shares issued by a parent company, the value |
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of the group assets must not exceed £200,000 immediately before the |
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relevant shares are issued. |
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(3) | For the purposes of this section the value of the group assets is the |
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sum of the values of the gross assets of each of the members of the |
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group, ignoring any that consist in rights against, or shares in or |
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securities of, another member of the group. |
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257DJ | The number of employees requirement |
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(1) | If the issuing company is a single company, the full-time equivalent |
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employee number for it must be less than 25 when the relevant |
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(2) | If the issuing company is a parent company, the sum of— |
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(a) | the full-time equivalent employee number for it, and |
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(b) | the full-time equivalent employee numbers for each of its |
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| must be less than 25 when the relevant shares are issued. |
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(3) | The full-time equivalent employee number for a company is |
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Find the number of full-time employees of the company. |
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Add, for each employee of the company who is not a full-time |
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employee, such fraction as is just and reasonable. |
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The result is the full-time equivalent employee number. |
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(4) | In this section references to an employee— |
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(a) | include a director, but |
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(i) | an employee on maternity or paternity leave, or |
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(ii) | a student on vocational training. |
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257DK | No previous other risk capital scheme investments |
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(1) | The requirement of this section is that— |
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(a) | no EIS investment or VCT investment is or has been made in |
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the issuing company on or before the day on which the |
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relevant shares are issued, and |
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(b) | no EIS investment or VCT investment has been made on or |
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before that day in a company which at the time the relevant |
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shares are issued is a qualifying subsidiary of the issuing |
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(2) | An “EIS investment” is made in the company if the company— |
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(a) | issues shares (money having been subscribed for them), and |
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|
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(b) | (at any time) provides a compliance statement under section |
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205 in respect of the shares; |
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| and the EIS investment is regarded as made when the shares are |
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(3) | A “VCT investment” is made in the company if an investment (of any |
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kind) in the company is made by a VCT. |
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257DL | The amount raised through the SEIS |
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(1) | The sum of the following amounts must not exceed £150,000— |
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(a) | the amount of the SEIS investment made in the issuing |
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company which includes the relevant shares (“the current |
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(b) | the amount of other SEIS investments made in the issuing |
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company on the same day as the current investment, |
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(c) | the amount of any SEIS investments made in the issuing |
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company during the period of 3 years ending immediately |
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(d) | the total of any other aid which— |
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(i) | is granted to the issuing company on the day the |
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current investment is made or during that period, and |
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(ii) | disregarding any SEIS investment within paragraph |
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(a) or (b), would be de minimis aid. |
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(2) | An “SEIS investment” is made in a company if— |
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(a) | the company issues shares (money having been subscribed |
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(b) | (at any time) the company provides a compliance statement |
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under section 257ED in respect of the shares; |
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| and an SEIS investment is made on the day when the shares are |
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issued, and the amount of the investment is the amount subscribed |
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(3) | “De minimis aid” means de minimis aid within the meaning of |
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Article 2 of Commission Regulation (EC) No 1998/2006 (de minimis |
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| The amount of the aid is the amount of the grant, or if the aid is not |
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in the form of a grant, the gross grant equivalent amount (within the |
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meaning of that Regulation). |
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(4) | Subsection (5) applies where, in relation to the current investment— |
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(a) | the sum of the amounts mentioned in subsection (1) exceeds |
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(b) | the sum of the amounts in paragraphs (c) and (d) of that |
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subsection does not exceed £150,000. |
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(5) | In the case of the current investment and each other SEIS investment |
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made in the issuing company on the same day (if any)— |
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(a) | the appropriate proportion of the shares in the issue |
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constituting the investment and the remainder are to be |
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treated as two separate issues for the purposes of this Part, |
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(b) | the requirement in subsection (1) is to be treated as met in |
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respect of the issue comprised of the appropriate proportion |
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|
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of the shares in the issue, but not in respect of the issue |
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comprised of the remaining shares. |
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(6) | “The appropriate proportion” of the shares is—
|
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| B is the sum of the amounts in paragraphs (c) and (d) of |
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| C is the sum of the amounts in paragraphs (a) and (b) of that |
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257DM | The qualifying subsidiaries requirement |
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| Any subsidiary that the issuing company has at any time in period B |
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must be a qualifying subsidiary of the company. |
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257DN | The property managing subsidiaries requirement |
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(1) | Any property managing subsidiary that the issuing company has at |
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any time in period B must be a qualifying 90% subsidiary of the |
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(2) | “Property managing subsidiary” means a subsidiary of the company |
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whose business consists wholly or mainly in the holding or |
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managing of land or any property deriving its value from land. |
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(3) | In subsection (2) references to property deriving its value from land |
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(a) | any shareholding in a company deriving its value directly or |
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(b) | any interest in settled property deriving its value directly or |
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indirectly from land, and |
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(c) | any option, consent or embargo affecting the disposition of |
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Attribution and claims for SEIS relief |
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257E | Attribution of SEIS relief to shares |
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(1) | References in this Part, in relation to any individual, to the SEIS relief |
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attributable to any shares or issue of shares are to be read as |
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references to any reduction made in the individual’s liability to |
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income tax that is attributed to those shares or that issue in |
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accordance with this section. |
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| This is subject to the provisions of Chapters 6 and 7 providing for the |
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withdrawal or reduction of SEIS relief. |
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(2) | If an individual’s liability to income tax is reduced in any tax year, |
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|
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(a) | if the reduction is obtained because of one issue of shares, the |
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amount of the tax reduction is attributed to that issue, and |
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(b) | if the reduction is obtained because of two or more issues of |
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shares, the amount of the reduction— |
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(i) | is apportioned between those issues in the same |
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proportions as the amounts claimed by the individual |
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in respect of each issue, and |
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(ii) | is attributed to those issues accordingly. |
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(3) | If under this section an amount of any reduction of income tax is |
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attributed to an issue of shares (“the original issue”), a proportionate |
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part of that amount is attributed to each share in respect of which the |
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(4) | If corresponding bonus shares are issued to the individual in respect |
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of any shares (“the original shares”) to which SEIS relief is |
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(a) | a proportionate part of the total amount attributed to the |
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original shares immediately before the bonus shares are |
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issued is attributed to each of the shares in the holding |
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comprising the original shares and the bonus shares, and |
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(b) | after the issue of the bonus shares, this Part applies as if the |
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original issue had included those shares. |
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(5) | In subsection (4) “corresponding bonus shares” means bonus shares |
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which are in the same company, of the same class, and carry the same |
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rights as the original shares. |
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(6) | If section 257AB(1) and (2) applies in the case of any issue of shares |
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as if part of the issue had been issued in a previous tax year, this |
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section has effect as if that part and the remainder were separate |
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issues of shares (and that part had been issued on a day in the |
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(7) | If, at a time when SEIS relief is attributable to, or to any part of, any |
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issue of shares, the relief falls to be withdrawn or reduced under |
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(a) | if it falls to be withdrawn, the relief attributable to each of the |
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shares in question is reduced to nil, and |
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(b) | if it falls to be reduced by any amount, the relief attributable |
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to each of the shares in question is reduced by a |
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proportionate part of that amount. |
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257EA | Time for making claims for SEIS relief |
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(1) | A claim for SEIS relief in respect of shares issued by a company in |
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any tax year may not be made later than the fifth anniversary of the |
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normal self-assessment filing date for the tax year. |
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(2) | If section 257AB(1) and (2) applies in the case of any issue of shares |
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as if part of the issue had been issued in a previous tax year, this |
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section has effect as if that part and the remainder were separate |
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issues of shares (and that part had been issued on a day in the |
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