Ownership condition treated as met for initial period
16(1)Sub-paragraph (4) applies in relation to a company that has made an entry notification that includes the declaration mentioned in paragraph 14(2)(c)(ii).
(2)Sub-paragraph (4) also applies in relation to a company if—
(a)the company meets the ownership condition on becoming a QAHC,
(b)within the first 2 years of its becoming a QAHC, it ceases to meet that condition, and
(c)as soon as reasonably practicable after ceasing to meet that condition the QAHC has notified HMRC of its intention to rely on that sub-paragraph.
(3)A notification under sub-paragraph (2)(c) must—
(a)include a declaration by the QAHC that it reasonably expects the ownership condition to be met before the end of the period of 2 years beginning with the day on which the QAHC became a QAHC;
(b)set out details of the steps (if any) the QAHC has taken, or expects to take, in order to secure the meeting of the ownership condition before the end of that period.
(4)Where this sub-paragraph applies in relation to a company—
(a)the ownership condition is treated as being met in relation to that company for the period of 2 years, or such longer period as HMRC may in writing agree to, beginning with the day on which the company became a QAHC, and
(b)any breach of that condition that occurred before this sub-paragraph applied is treated has having not occurred.
(5)But if, at any time during that period, it becomes apparent to the QAHC that there is no reasonable expectation of the ownership condition being met by the end of that period—
(a)the QAHC must notify HMRC of that fact as soon as reasonably practicable, and
(b)sub-paragraph (4) ceases to apply from the time when it became so apparent.