[F1809FZLSignificant equity stake fundsU.K.
(1)Where a significant equity stake fund has a significant equity stake investment in a trading company or the holding company of a trading group—
(a)any investment made for the purposes of the fund in that company made after the time the significant equity stake investment was acquired is to be regarded as having been made at that time, and
(b)any disposal for the purposes of the fund of an investment in the company after that time is to be regarded as not being made until—
(i)a relevant disposal is made, or
(ii)the scheme director condition ceases to be met.
(2)In subsection (1)(b) “relevant disposal” means a disposal which (apart from subsection (1)) has the effect that the significant equity stake fund ceases to have a 15% interest in the company.
(3)In this Chapter, “significant equity stake fund” means an investment scheme—
(a)which is not a venture capital fund, and
(b)in relation to which the condition in subsection (4) is met.
(4)The condition is that when the scheme starts to invest it is reasonable to suppose that over the investing life of the scheme—
(a)more than 50% of the total value invested for the purposes of the scheme will be invested in investments which are significant equity stake investments, and
(b)more than 50% of that value will be invested in investments which are held for 40 months or more.
(5)In determining whether subsection (4)(b) is met in relation to an investment scheme, apply the rule in subsection (1) to the scheme.
(6)In this section, “significant equity stake investment”, in relation to an investment scheme, means an investment in a trading company or the holding company of a trading group where—
(a)at the time the investment is made, the company is unlisted and likely to remain so,
(b)by virtue of the investment (on its own or with other investments) the scheme has a 20% interest in the company, and
(c)the scheme director condition is met.
(7)For the purposes of this section, in determining whether a significant equity stake fund has an interest of a particular percentage in a company, any share capital of the company which is held for the purposes of an associated investment scheme is to be regarded as held for the purposes of the significant equity stake fund.]
Textual Amendments
F1Pt. 13 Ch. 5F inserted (with effect in accordance with s. 37(4) of the amending Act) by Finance Act 2016 (c. 24), s. 37(2)