SCHEDULES
SCHEDULE 20Corporate venturing scheme
1
Schedule 15 to the Finance Act 2000 (c. 17) (the corporate venturing scheme) is amended as follows.
2
In paragraph 3 (meaning of “the qualification period”)—
a
in sub-paragraph (1)(b)(ii), and
b
in sub-paragraph (2)(a) and (b),
for “qualifying subsidiaries” substitute “
qualifying 90% subsidiaries
”
.
3
In paragraph 15 (introduction) after paragraph (e) insert—
ea
property managing subsidiaries (see paragraph 21A);
4
In paragraph 20 (the qualifying subsidiaries requirement) for sub-paragraph (2) substitute—
2
In this paragraph “subsidiary” means any company which the company controls, either on its own or together with any person connected with it.
3
For the purpose of sub-paragraph (2), the question whether a person controls a company shall be determined in accordance with section 416(2) to (6) of the Taxes Act 1988.
5
1
Paragraph 21 (meaning of “qualifying subsidiary”) is amended as follows.
2
In sub-paragraph (2)—
a
omit paragraphs (a) to (c),
b
before paragraph (d) insert—
ca
the subsidiary is a 51% subsidiary of the relevant company;
c
in paragraph (e) for “the conditions in paragraphs (a) to” substitute “
either of the conditions in paragraphs (ca) and
”
.
3
In sub-paragraph (4)(a)(ii), after “company” insert “
concerned
”
.
4
In sub-paragraph (5)—
a
after “qualifying subsidiary” insert “
of the relevant company
”
,
b
for “and not part” substitute “
and is not to be part
”
.
6
After paragraph 21 insert—
The property managing subsidiaries requirement
21A
1
The issuing company is not a qualifying issuing company in relation to the relevant shares if, at any time during the qualification period relating to those shares, it has a property managing subsidiary which is not a qualifying 90% subsidiary of the issuing company (see paragraph 23(10) and (11)).
2
“Property managing subsidiary” means a qualifying subsidiary of the issuing company whose business consists wholly or mainly in the holding or managing of land or any property deriving its value from land.
3
In sub-paragraph (2), “land” and “property deriving its value from land” have the same meaning as in section 776 of the Taxes Act 1988.
7
In paragraph 23 (the trading activities requirement)—
a
in sub-paragraph (3)(b), for “at least one group company” substitute “
the issuing company or a qualifying 90% subsidiary of the issuing company
”
,
b
in sub-paragraph (5)—
i
for “a subsidiary” substitute “
a qualifying 90% subsidiary of the issuing company
”
,
ii
for “or subsidiary” substitute “
or a qualifying 90% subsidiary of the issuing company
”
,
c
in sub-paragraph (6), for “the company”, in the first place, substitute “
a company
”
,
F1d
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
In paragraph 24 (ceasing to meet trading requirements by reason of administration, receivership etc)—
a
in sub-paragraph (1)—
i
omit “which is in administration or receivership”,
ii
after “by reason” insert “
only
”
,
b
in sub-paragraph (2)(b), after “company” insert “
concerned
”
,
c
in sub-paragraph (4)—
i
in paragraph (a), for “of the company or any of its subsidiaries” substitute “
only of the company or any of its qualifying subsidiaries
”
,
ii
in paragraph (b), for “and not” substitute “
and is not
”
.
9
In paragraph 25 (meaning of “qualifying trade”) in sub-paragraph (3)(b), for “any other group company” substitute “
the issuing company or any of its qualifying 90% subsidiaries
”
.
10
In paragraph 35 (requirement as to the shares) in sub-paragraph (2), for “the issuing company at a future date” substitute “
any person at a future date in respect of the acquisition of the shares
”
.
11
In paragraph 36 (requirement as to money raised)—
a
in sub-paragraph (1B)(b)—
i
for “relevant trade was not being carried on” substitute “
issuing company or a qualifying 90% subsidiary of that company had not begun to carry on the relevant trade
”
,
ii
for “subsidiary” substitute “
qualifying 90% subsidiary of that company
”
,
b
in sub-paragraphs (4)(b)(ii) and (5)(b), for “qualifying subsidiary” substitute “
qualifying 90% subsidiary
”
.
12
In paragraph 40 (entitlement to claim)—
a
in sub-paragraph (2), for paragraph (a) substitute—
a
the funded trade has been carried on for four months by no person other than the issuing company or a qualifying 90% subsidiary of that company, disregarding—
i
any time spent preparing to carry on that trade, and
ii
any person required to be disregarded in accordance with sub-paragraph (2A) or (2B), and
b
after sub-paragraph (2) insert—
2A
At any time when the funded trade is carried on by the partners in a partnership of which the issuing company, or a qualifying 90% subsidiary of that company, is a member, there shall be disregarded for the purposes of sub-paragraph (2)(a) any other members of the partnership at that time.
2B
At any time when the funded trade is carried on by the parties to a joint venture to which the issuing company, or a qualifying 90% subsidiary of that company, is a party, there shall be disregarded for the purposes of sub-paragraph (2)(a) any other parties to the joint venture at that time.
c
for sub-paragraph (5)(a) substitute—
a
by reason only of the issuing company or any other company being wound up or dissolved without winding up, the funded trade is carried on as mentioned in sub-paragraph (2)(a) for a period shorter than four months, and
d
in sub-paragraph (5)(b), for “was”, in each place, substitute “
is
”
,
e
for sub-paragraph (6)(a) substitute—
a
by reason only of anything done as a consequence of the issuing company or any other company being in administration or receivership, the funded trade is carried on as mentioned in sub-paragraph (2)(a) for a period shorter than four months, and
f
in sub-paragraph (6)(b), after “company” insert “
concerned
”
.
13
In paragraph 102 (minor definitions etc) after sub-paragraph (7) insert—
8
In determining for the purposes of paragraph 3(2), 23(5) or 36(1B) when a trade is begun to be carried on by a qualifying 90% subsidiary of the issuing company there shall be disregarded any carrying on of the trade by it before it became such a subsidiary.
14
In paragraph 103 (index of defined expressions), after the entry for “qualifying subsidiary” insert—
qualifying 90% subsidiary
paragraph 23(10) and (11)
15
The amendments made by this Schedule have effect in relation to shares issued on or after 17th March 2004.