SCHEDULES

SCHEDULE 16Community investment tax relief

Part 3Qualifying investments

Conditions to be satisfied in relation to securities

10

(1)

The first condition of this paragraph is that the securities must be—

(a)

subscribed for wholly in cash, and

(b)

fully paid for on the investment date.

(2)

The second condition is that the securities must not carry—

(a)

any present or future right to be redeemed within the five year period, or

(b)

any present or future right to be converted into or exchanged for a loan which is, or securities, shares or other rights which are, redeemable within that period.