Part 6Venture capital trusts
Chapter 4Qualifying holdings
Introduction
286Qualifying holdings: introduction
1
If any shares in or securities of any company (“the relevant company”) are at any time held by another company (“the investing company”), this Chapter applies for determining whether and to what extent those shares or securities (“the relevant holding”) are, for the purposes of Chapter 3, to be regarded as at that time comprised in the investing company's qualifying holdings.
2
The relevant holding is to be regarded as comprised in the investing company's qualifying holding at any time if—
a
all the following requirements of this Chapter are met at that time in relation to the relevant company and the relevant holding, and
b
the relevant holding consists of shares or securities which were first issued by the relevant company to the investing company and have been held by the investing company ever since.
3
The requirements are those imposed as to—
a
maximum qualifying investment (see section 287),
b
no guaranteed loan (see section 288),
c
proportion of eligible shares (see section 289),
d
trading (see section 290),
e
the carrying on of a qualifying activity (see section 291),
F2ea
the maximum amount raised annually through risk capital schemes (see section 292A),
f
use of the money raised (see section 293),
g
the relevant company carrying on the relevant qualifying activity (see section 294),
h
unquoted status (see section 295),
i
control and independence (see section 296),
j
gross assets (see section 297),
F1ja
number of employees (see section 297A),
k
qualifying subsidiaries (see section 298), and
l
property managing subsidiaries (see section 299).
4
Subject to section 293(7), subsection (5) applies if—
a
the requirements of section 287, 293 or 294 would be met as to only part of the money raised by the issue of the relevant holding, and
b
that holding is not otherwise capable of being treated as comprising separate holdings.
5
If this subsection applies, this Chapter has effect in relation to the relevant holding as if it were two separate holdings consisting of—
a
a holding from which the part of the money mentioned in subsection (4)(a) was raised, and
b
a holding from which the remainder was raised.
Chapter 3 has effect as if the value of the relevant holding were to be apportioned between the two holdings treated as subsisting by this subsection.