F1SCHEDULE 5B Enterprise investment scheme: re-investment
F2Re-investment in same company etc.
10
(1)
An individual to whom any eligible shares in a qualifying company are issued shall not be regarded for the purposes of this Schedule as making a qualifying investment if, where the asset disposed of consisted of shares in or F3securities of any company (“the initial holding"), the qualifying company—
(a)
is the company in which the initial holding subsisted; or
(b)
is a company that was, at the time of the disposal of the initial holding, or is, at the time of the issue of the eligible shares, a member of the same group of companies as the company in which the initial holding subsisted.
(2)
Where—
(a)
any eligible shares in a qualifying company (“the acquired holding") are issued to an individual,
(b)
an amount of qualifying expenditure on those shares has been set under this Schedule against the whole or part of any chargeable gain (the “postponed gain"), and
(c)
after the issue of those shares, eligible shares in a relevant company are issued to him,
he shall not be regarded in relation to the issue to him of the shares in the relevant company as making a qualifying investment for the purposes of this Schedule.
(3)
For the purposes of sub-paragraph (2) above a company is a relevant company if—
(a)
where that individual has disposed of any of the acquired holding, it is the company in which the acquired holding has subsisted or a company which was a member of the same group of companies as that company at any time since the acquisition of the acquired holding;
(b)
it is a company in relation to the disposal of any shares in which there has been a claim under this Schedule such that, without that claim, there would have been no postponed gain in relation to the acquired holding; or
(c)
it is a company which, at the time of the disposal or acquisition to which the claim relates, was a member of the same group of companies as a company falling within paragraph (b) above.
F4(4)
In this paragraph “group of companies” means a company which has one or more 51 per cent. subsidiaries, together with those subsidiaries.