SCHEDULES
SCHEDULE 17 Chargeable gains: re-investment relief
Qualifying investments
2
1
In subsection (8) of section 164A (cases where eligible shares are not a qualifying investment), after “in a qualifying company shall” there shall be inserted “
, subject to subsection (8A) below,
”
.
2
After that subsection there shall be inserted the following subsections—
8A
Where the eligible shares acquired by any person in a qualifying company are shares which he acquires by their being issued to him, his acquisition of the shares shall not be regarded as the acquisition of a qualifying investment unless the qualifying company, or a qualifying subsidiary of that company, is intending to employ the money raised by the issue of the shares wholly for the purposes of a qualifying trade carried on by it.
8B
For the purposes of subsection (8A) above—
a
the purposes of a trade include the purpose of preparing for the carrying on of the trade; and
b
“qualifying subsidiary” has the same meaning as in section 164G.