Finance Act 2004

2 (1) Section 289A of the Taxes Act 1988 (form of relief) is amended as follows. U.K.

(2) In subsection (6), for the words from “A claim” to “below is complied with” substitute “ A claim for relief in respect of eligible shares issued by a company shall not be allowed unless subsection (7) below is complied with in relation to the issue of shares in question ”.

(3) In subsection (7)—

(a) in paragraph (a)—

(i) for “the case of shares issued” substitute “ a case where the money raised by an issue of eligible shares is raised wholly ”,

(ii) for “company or subsidiary concerned has carried on the trade for four months” substitute “ trade concerned has been carried on for four months by no person other than the qualifying company or a qualifying 90% subsidiary of that company ”,

(b) in paragraph (b)—

(i) for “the case of shares issued” substitute “ a case where the money raised by an issue of eligible shares is raised wholly or partly ”,

(ii) for the words from “or within” to the end substitute “ the research and development concerned has been carried on for four months by no person other than the qualifying company or a qualifying 90% subsidiary of that company ”.

(4) In subsection (8)—

(a) for paragraph (a) substitute—

“(a) by reason only of the qualifying company or any other company being wound up or dissolved without winding up—

(i) the trade concerned is carried on as mentioned in subsection (7)(a) above, or

(ii) the research and development concerned is carried on as mentioned in subsection (7)(b) above,

for a period shorter than four months, and”,

(b) in paragraph (b)—

(i) omit “it is shown that”,

(ii) for “was for” substitute “ is for ”,

(iii) for “not as” substitute “ is not ”,

(iv) for “which was” substitute “ which is ”,

(c) in the full-out words at the end, after “(7)(a)” insert “ or, as the case may be, (7)(b) ”.

(5) In subsection (8A)—

(a) for the words from “Where” to “shorter period.” substitute— “Where, by reason only of anything done as a consequence of the qualifying company or any other company being in administration or receivership—

(a) the trade concerned is carried on as mentioned in subsection (7)(a) above for a period shorter than four months, or

(b) the research and development concerned is carried on as mentioned in subsection (7)(b) above for a period shorter than four months,

subsection (7)(a) or, as the case may be, (7)(b) above shall have effect as if it referred to that shorter period. ”,

(b) in paragraph (b), after “company” insert “ concerned ”.