|
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|
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3 (1) | Part 6 of ITA 2007 is amended as follows. |
| |
(2) | In section 286(3) (qualifying holdings: introduction) after paragraph (j) |
| |
| |
“(ja) | number of employees (see section 297A),”. |
| 5 |
(3) | After section 297 insert— |
| |
“297A | The number of employees requirement |
| |
(1) | If the relevant company is a single company, the full-time equivalent |
| |
employee number for it must be less than 50 when the relevant |
| |
| 10 |
(2) | If the relevant company is a parent company, the sum of— |
| |
(a) | the full-time equivalent employee number for it, and |
| |
(b) | the full-time equivalent employee numbers for each of its |
| |
| |
| must be less than 50 when the relevant holding is issued. |
| 15 |
(3) | The full-time equivalent employee number for a company is |
| |
| |
| |
| Find the number of full-time employees of the company. |
| |
| 20 |
| Add, for each employee of the company who is not a full-time |
| |
employee, such fraction as is just and reasonable. |
| |
| The result is the full-time equivalent employee number. |
| |
(4) | In this section references to an employee— |
| |
(a) | include a director, but |
| 25 |
| |
(i) | an employee on maternity or paternity leave, or |
| |
(ii) | a student on vocational training.” |
| |
(4) | In section 327 (certain requirements of Chapter 4 to be treated as met)— |
| |
(a) | in subsection (1), at the end insert “, and |
| 30 |
section 297A (the number of employees requirement).”; |
| |
(b) | in subsection (4)(b) for “and 297” substitute “, 297 and 297A”. |
| |
(5) | This paragraph is deemed to have come into force on 6th April 2007. |
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(6) | The amendments made by this paragraph do not have effect in relation to— |
| |
(a) | a relevant holding issued before that date, or |
| 35 |
(b) | a relevant holding acquired by a company (“the investing company”) |
| |
by means of the investment of protected money. |
| |
(7) | For the purposes of sub-paragraph (6)(b), “protected money” is— |
| |
(a) | money raised by the issue before 6th April 2007 of shares in or |
| |
securities of the investing company, or |
| 40 |
(b) | money derived from the investment of such money. |
| |
|
| |
|
| |
|
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Limit on amount raised annually by company through risk capital schemes |
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Corporate venturing scheme |
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4 (1) | Schedule 15 to FA 2000 is amended as follows. |
| |
(2) | In paragraph 34 (introduction to Part) after sub-paragraph (a) insert— |
| 5 |
“(aa) | the maximum amount raised annually through risk capital |
| |
schemes (see paragraph 35A);”. |
| |
(3) | After paragraph 35 insert— |
| |
“Requirement as to maximum amount raised annually through risk capital schemes |
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35A (1) | The total amount of relevant investments made in the issuing |
| 10 |
company in the year ending with the date the relevant shares are |
| |
issued must not exceed £2 million. |
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(2) | In sub-paragraph (1), the reference to relevant investments made |
| |
in the issuing company includes relevant investments made in any |
| |
company that is, or has at any time in the year mentioned there |
| 15 |
been, a subsidiary of the issuing company (whether or not it was |
| |
such a subsidiary when the investment was made). |
| |
(3) | A “relevant investment” is made in a company if— |
| |
(a) | an investment (of any kind) in the company is made by a |
| |
| 20 |
(b) | the company issues shares (money having been subscribed |
| |
for them), and (at any time) the company provides— |
| |
(i) | a compliance statement under paragraph 42, or |
| |
(ii) | a compliance statement under section 205 of ITA |
| |
2007 (enterprise investment scheme), |
| 25 |
| in respect of the shares. |
| |
(4) | An investment within sub-paragraph (3)(b) is regarded as made |
| |
when the shares are issued.” |
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(4) | In paragraph 63(1)(a) (withdrawal of relief: interest), after sub-paragraph (i) |
| |
| 30 |
“(ia) | paragraph 35A (maximum amount raised annually |
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through risk capital schemes);”. |
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Enterprise investment scheme |
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5 (1) | Part 5 of ITA 2007 is amended as follows. |
| |
(2) | In section 172 (overview of Chapter), after paragraph (a) insert— |
| 35 |
“(aa) | the maximum amount raised annually through risk capital |
| |
schemes (see section 173A),”. |
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|
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|
| |
|
(3) | After section 173 insert— |
| |
“173A | The maximum amount raised annually through risk capital schemes |
| |
| |
(1) | The total amount of relevant investments made in the issuing |
| |
company in the year ending with the date the relevant shares are |
| 5 |
issued must not exceed £2 million. |
| |
(2) | In subsection (1), the reference to relevant investments made in the |
| |
issuing company includes relevant investments made in any |
| |
company that is, or has at any time in the year mentioned there been, |
| |
a subsidiary of the issuing company (whether or not it was such a |
| 10 |
subsidiary when the investment was made). |
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(3) | A “relevant investment” is made in a company if— |
| |
(a) | an investment (of any kind) in the company is made by a |
| |
| |
(b) | the company issues shares (money having been subscribed |
| 15 |
for them), and (at any time) the company provides— |
| |
(i) | a compliance statement under section 205, or |
| |
(ii) | a compliance statement under paragraph 42 of |
| |
Schedule 15 to FA 2000 (corporate venturing scheme), |
| |
| in respect of the shares. |
| 20 |
(4) | An investment within subsection (3)(b) is regarded as made when |
| |
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(4) | In section 239(1) (withdrawal etc of relief: date from which interest is |
| |
chargeable), in column 1 of the Table, after “163,” insert “173A”. |
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(5) | The amendments made by this paragraph do not have effect in relation to |
| 25 |
shares issued to the managers of an approved fund which closed before the |
| |
day on which this Act is passed. |
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(6) | Paragraph 2(5) (meaning of “the managers of an approved fund” etc) applies |
| |
for the purposes of sub-paragraph (5). |
| |
| 30 |
6 (1) | Chapter 4 of Part 6 of ITA 2007 (qualifying holdings) is amended as follows. |
| |
(2) | In section 286(3) (introduction) after paragraph (e) insert— |
| |
“(ea) | the maximum amount raised annually through risk capital |
| |
schemes (see section 292A),”. |
| |
(3) | After section 292 insert— |
| 35 |
“292A | The maximum amount raised annually through risk capital schemes |
| |
| |
(1) | The total amount of relevant investments made in the relevant |
| |
company in the year ending with the date the relevant holding is |
| |
issued must not exceed £2 million. |
| 40 |
(2) | In subsection (1), the reference to relevant investments made in the |
| |
relevant company includes relevant investments made in any |
| |
company that is, or has at any time in the year mentioned there been, |
| |
|
| |
|
| |
|
a subsidiary of the relevant company (whether or not it was such a |
| |
subsidiary when the investment was made). |
| |
(3) | A “relevant investment” is made in a company if— |
| |
(a) | an investment (of any kind) in the company is made by a |
| |
| 5 |
(b) | the company issues shares (money having been subscribed |
| |
for them), and (at any time) the company provides— |
| |
(i) | a compliance statement under section 205 (enterprise |
| |
| |
(ii) | a compliance statement under paragraph 42 of |
| 10 |
Schedule 15 to FA 2000 (corporate venturing scheme), |
| |
| in respect of the shares. |
| |
(4) | For the purposes of subsections (1) and (2), an investment within |
| |
subsection (3)(b) is regarded as made when the shares are issued. |
| |
(5) | Subsection (6) applies if, by virtue of the provision of a compliance |
| 15 |
statement under section 205 above or paragraph 42 of Schedule 15 to |
| |
FA 2000, the requirement of this section is not met. |
| |
(6) | The requirement is to be treated as having been met throughout the |
| |
| |
(a) | beginning with the time the relevant holding was issued, and |
| 20 |
(b) | ending with the time the compliance statement was |
| |
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(4) | This paragraph is deemed to have come into force on 6th April 2007. |
| |
(5) | The amendments made by this paragraph do not have effect in relation to an |
| |
investment made by a VCT of protected money. |
| 25 |
(6) | “Protected money” means— |
| |
(a) | money raised by the issue on or before 5th April 2007 of shares in or |
| |
securities of the VCT, and |
| |
(b) | money derived from the investment of such money. |
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Enterprise investment scheme: reinvestment |
| 30 |
7 (1) | Schedule 5B to TCGA 1992 is amended as follows. |
| |
(2) | In paragraph 1 (application of Schedule)— |
| |
(a) | in sub-paragraph (2), after paragraph (d) insert— |
| |
“(da) | the total amount of relevant investments made in |
| |
the company in the year ending with the date the |
| 35 |
shares are issued does not exceed £2 million,”, and |
| |
(b) | after sub-paragraph (5) insert— |
| |
“(6) | Section 173A(3) and (4) of ITA 2007 (meaning of “relevant |
| |
investment”) apply for the purposes of sub-paragraph |
| |
| 40 |
(7) | In sub-paragraph (2)(da), the reference to relevant |
| |
investments made in the company includes relevant |
| |
investments made in a company that is, or has at any time |
| |
in the year mentioned there been, a subsidiary of the |
| |
|
| |
|
| |
|
company (whether or not it was such a subsidiary when |
| |
the investment was made).” |
| |
(3) | In paragraph 1A(1) (failure of conditions of application), after “(2)(b)” insert |
| |
| |
| 5 |
8 (1) | This paragraph applies for the purposes of— |
| |
(a) | paragraph 35A of Schedule 15 to FA 2000, |
| |
(b) | section 173A of ITA 2007 (including that section as applied by |
| |
paragraph 1(6) of Schedule 5B to TCGA 1992), and |
| |
(c) | section 292A of ITA 2007. |
| 10 |
(2) | References to investments made by a VCT do not include— |
| |
(a) | investments made on or before 5th April 2007, |
| |
(b) | investments of protected money (as defined by paragraph 6(6)). |
| |
(3) | References to shares in respect of which compliance statements are provided |
| |
| 15 |
(a) | shares issued before the day on which this Act is passed, or |
| |
(b) | shares issued to the managers of an approved fund which closed |
| |
| |
(4) | Paragraph 2(5) (meaning of “the managers of an approved fund” etc) applies |
| |
for the purposes of sub-paragraph (3)(b) above. |
| 20 |
| |
Excluded activities: receipt of royalties and licence fees |
| |
Corporate venturing scheme |
| |
9 (1) | Paragraph 29 of Schedule 15 to FA 2000 is amended as follows. |
| |
(2) | In sub-paragraph (3), for paragraphs (a) and (b) substitute— |
| 25 |
“(a) | by the issuing company, or |
| |
(b) | by a company which was a qualifying subsidiary of the |
| |
issuing company throughout a period during which it |
| |
created the whole or greater part (in terms of value) of the |
| |
| 30 |
(3) | After sub-paragraph (6) insert— |
| |
| |
(a) | the issuing company acquired all the shares (“old shares”) |
| |
in another company (“the old company”) at a time when |
| |
the only shares issued in the issuing company were |
| 35 |
| |
(b) | the consideration for the old shares consisted wholly of the |
| |
issue of shares in the issuing company, |
| |
| references in sub-paragraph (3) to the issuing company include |
| |
| 40 |
10 | In paragraph 86(2) (substitution of new shares for old shares), after |
| |
“Schedule”, in the first place it occurs, insert “(except paragraph 29(7))”. |
| |
|
| |
|
| |
|
Enterprise investment scheme |
| |
11 (1) | In section 297 of ICTA (qualifying trades)— |
| |
(a) | in subsection (5), for paragraphs (a) and (b) substitute— |
| |
“(a) | by the company mentioned in section 293(1), or |
| |
(b) | by a company which was a subsidiary of that |
| 5 |
company throughout a period during which it |
| |
created the whole or greater part (in terms of value) of |
| |
| |
(b) | in subsection (5A), omit paragraphs (b) and (c) and the words after |
| |
| 10 |
(c) | after subsection (5C) insert— |
| |
| |
(a) | the company mentioned in section 293(1) (“the |
| |
issuing company”) acquired all the shares (“old |
| |
shares”) in another company (“the old company”) at a |
| 15 |
time when the only shares issued in the issuing |
| |
company were subscriber shares, and |
| |
(b) | the consideration for the old shares consisted wholly |
| |
of the issue of shares in the issuing company, |
| |
| references in subsection (5) above to the company mentioned |
| 20 |
in section 293(1) include the old company.” |
| |
(2) | In section 304A of that Act (acquisition of share capital by new company)— |
| |
(a) | in subsection (3), after “Chapter” insert “(except section 297(5D))”, |
| |
| |
(b) | in subsection (4), after “Chapter” insert “(except section 297(5D))”. |
| 25 |
(3) | In section 576B of that Act (share loss relief: the trading requirement), after |
| |
| |
“(9) | In section 195 of ITA 2007 as applied by subsection (7) for the |
| |
purposes mentioned in subsection (8), references to the issuing |
| |
company are to be read as references to the company mentioned in |
| 30 |
| |
(4) | In section 576K of that Act (share loss relief: substitution of new shares for |
| |
old), after subsection (3) insert— |
| |
“(4) | Nothing in subsection (2) applies in relation to section 195(7) of ITA |
| |
2007 as applied by section 576B(7) above for the purposes mentioned |
| 35 |
| |
(5) | In section 137 of ITA 2007 (share loss relief: trading requirement for shares |
| |
to which EIS relief not attributable), after subsection (8) insert— |
| |
“(9) | In section 195 as applied by subsection (7) for the purposes |
| |
mentioned in subsection (8), references to the issuing company are to |
| 40 |
be read as references to the company mentioned in subsection (1).” |
| |
(6) | In section 146 of that Act (share loss relief: substitution of new shares for |
| |
old), after subsection (2) insert— |
| |
“(3) | Nothing in subsection (2) applies in relation to section 195(7) as |
| |
applied by section 137(7) for the purposes mentioned in section |
| 45 |
| |
|
| |
|
| |
|
(7) | In section 195 of ITA 2007 (EIS: excluded activities: receipt of royalties and |
| |
| |
(a) | in subsection (4), for paragraphs (a) and (b) substitute— |
| |
“(a) | by the issuing company, or |
| |
(b) | by a company which was a qualifying subsidiary of |
| 5 |
the issuing company throughout a period during |
| |
which it created the whole or greater part (in terms of |
| |
value) of the intangible asset.”, |
| |
(b) | in subsection (6), omit the definition of “holding company”, and |
| |
(c) | after that subsection insert— |
| 10 |
| |
(a) | the issuing company acquired all the shares (“old |
| |
shares”) in another company (“the old company”) at a |
| |
time when the only shares issued in the issuing |
| |
company were subscriber shares, and |
| 15 |
(b) | the consideration for the old shares consisted wholly |
| |
of the issue of shares in the issuing company, |
| |
| references in subsection (4) to the issuing company include |
| |
| |
(8) | In section 249 of that Act (substitution of new shares for old shares)— |
| 20 |
(a) | in subsection (2), after “Part” insert “(except section 195(7))”, and |
| |
(b) | in subsection (4), after “Part” insert “(except section 195(7))”. |
| |
| |
12 (1) | Section 306 of ITA 2007 (qualifying holdings) is amended as follows. |
| |
(2) | In subsection (4), for paragraphs (a) and (b) substitute— |
| 25 |
“(a) | by the relevant company, or |
| |
(b) | by a company which was a qualifying subsidiary of the |
| |
relevant company throughout a period during which it |
| |
created the whole or greater part (in terms of value) of the |
| |
| 30 |
(3) | In subsection (6), omit the definition of “holding company”. |
| |
(4) | After that subsection insert— |
| |
| |
(a) | the relevant company acquired all the shares (“old shares”) in |
| |
another company (“the old company”) at a time when the |
| 35 |
only shares issued in the relevant company were subscriber |
| |
| |
(b) | the consideration for the old shares consisted wholly of the |
| |
issue of shares in the relevant company, |
| |
| references in subsection (4) to the relevant company include the old |
| 40 |
| |
| |
13 | This Part of this Schedule is deemed to have come into force on 6th April |
| |
| |
|
| |
|