SCHEDULES
SCHEDULE 16Venture capital schemes etc
Part 1Limit on number of employees of company in which investment is made
Enterprise investment scheme
2
1
Chapter 4 of Part 5 of ITA 2007 (the issuing company) is amended as follows.
2
In section 180 (overview of Chapter 4), after paragraph (e) insert—
ea
number of employees (see section 186A),
3
After section 186 insert—
186AThe number of employees requirement
1
If the issuing company is a single company, the full-time equivalent employee number for it must be less than 50 when the relevant shares are issued.
2
If the issuing company is a parent company, the sum of—
a
the full-time equivalent employee number for it, and
b
the full-time equivalent employee numbers for each of its qualifying subsidiaries,
must be less than 50 when the relevant shares are issued.
3
The full-time equivalent employee number for a company is calculated as follows—
Step 1
Find the number of full-time employees of the company.
Step 2
Add, for each employee of the company who is not a full-time employee, such fraction as is just and reasonable.
The result is the full-time equivalent employee number.
4
In this section references to an employee—
a
include a director, but
b
do not include—
i
an employee on maternity or paternity leave, or
ii
a student on vocational training.
4
The amendments made by this paragraph do not have effect in relation to—
a
shares issued before the day on which this Act is passed, or
b
shares issued to the managers of an approved fund which closed before that day.
5
For the purposes of sub-paragraph (4)(b)—
a
“the managers of an approved fund” has the same meaning as in section 251 of ITA 2007, and
b
the reference to shares issued to the managers of an approved fund is to shares issued to those managers as nominee for an individual who has invested in the fund.