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Part 5U.K.Enterprise investment scheme

Chapter 4U.K.The issuing company

The requirementsU.K.

[F1186AThe number of employees requirementU.K.

(1)If the issuing company is a single company, the full-time equivalent employee number for it must be less than [F2the permitted limit] when the relevant shares are issued.

(2)If the issuing 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 qualifying subsidiaries,

must be less than [F3the permitted limit] when the relevant shares are issued.

(3)The full-time equivalent employee number for a company is calculated as follows—

Step 1

Find the number of full-time employees of the company.

Step 2

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.

[F4(3A)The permitted limit” means—

(a)if the issuing company is a knowledge-intensive company (see section 252A) at the time the relevant shares are issued, 500, and

(b)in any other case, 250.

(3B)The Treasury may by regulations amend subsection (3A)(a) or (b) by substituting a different number for the number for the time being specified there.]

(4)In this section references to an employee—

(a)include a director, but

(b)do not include—

(i)an employee on maternity [F5, paternity [F6, shared parental or parental bereavement]] leave, or

(ii)a student on vocational training.]

Textual Amendments

F2Words in s. 186A(1) substituted (with effect in accordance with Sch. 5 para. 23 of the amending Act) by Finance (No. 2) Act 2015 (c. 33), Sch. 5 para. 13(a)

F3Words in s. 186A(2) substituted (with effect in accordance with Sch. 5 para. 23 of the amending Act) by Finance (No. 2) Act 2015 (c. 33), Sch. 5 para. 13(a)

F4 S. 186A(3A)(3B) inserted (with effect in accordance with Sch. 5 para. 23 of the amending Act) by Finance (No. 2) Act 2015 (c. 33), Sch. 5 para. 13(b)

F5Words in s. 186A(4)(b)(i) substituted (1.12.2014) by Children and Families Act 2014 (c. 6), s. 139(6), Sch. 7 para. 70; S.I. 2014/1640, art. 5(2)(cc)