SCHEDULE 15 The corporate venturing scheme
Part VI Withdrawal of investment relief
Provision supplementary to paragraph 56 and 57
58
(1)
Any repayment shall be disregarded for the purposes of paragraph 56(1) (repayments etc. which cause withdrawal of investment relief) to the extent to which investment relief attributable to any shares has already been reduced or withdrawn on its account.
(2)
In any case where—
(a)
investment relief is attributable to such of the relevant shares as are held by the investing company;
(b)
the issuing company has made one or more other issues of shares each of which includes shares (“”) to which investment relief is attributable, and
(c)
the repayment falls—
(i)
within the period of restriction relating to the relevant shares, and
(ii)
within one or more of the equivalent periods relating to any of the designated shares,
paragraph 56(4) shall have effect in relation to each of the issues of shares as if the amount received by the member, or (as the case may be) the appropriate fraction of that amount, were reduced by multiplying it by the relevant fraction.
(3)
For the purposes of sub-paragraph (2) “the equivalent period”, in relation to any designated shares, means the period—
(a)
beginning one year before the shares are issued, and
(b)
ending at the end of the qualification period relating to the shares.
For the purposes of determining the qualification period relating to any designated shares, the references in paragraph 3 to the relevant shares shall be read as references to those designated shares.
(4)
In sub-paragraph (2)—
(a)
“the appropriate fraction” has the meaning given by paragraph 56(5), and
(b)
“the relevant fraction” means—
Where—
E is the amount subscribed by companies for shares which are included in the issue in question and to which investment relief is or, but for paragraph 56(2)(b), would be attributable; and
F is the aggregate of that amount and the corresponding amount or amounts for the other issue or issues.
(5)
Where—
(a)
a company issues share capital of nominal value equal to the authorised minimum (within the meaning of the M1Companies Act 1985) for the purposes of complying with the requirements of section 117 of that Act (public company not to do business unless requirements as to share capital complied with), and
(b)
the registrar of companies issues the company with a certificate under section 117,
paragraph 56(1) shall not apply in relation to any redemption of those shares within 12 months of the date on which they were issued.
(6)
In relation to companies incorporated under the law of Northern Ireland references in sub-paragraph (5) to the M2Companies Act 1985 and to section 117 of that Act shall have effect as references to the M3Companies (Northern Ireland) Order 1986 and to Article 127 of that Order.
(7)
References in paragraphs 56 and 57 and this paragraph to a subsidiary of the issuing company are references to any company which at any time in the period of restriction relating to the relevant shares is a 51% subsidiary of the issuing company whether or not it is such a subsidiary at the time of the repayment in question.
(8)
For the purposes of this paragraph “repayment” has the meaning given in paragraph 57(2).