C1F1PART 5ASeed enterprise investment scheme
Pt. 5A applied by Taxation of Chargeable Gains Act 1992 (c. 12), Sch. 5BB para. 8(4) (as inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 6 para. 5)
CHAPTER 4The issuing company
The requirements
257DGThe control and independence requirement
1
The control element of the requirement is that—
a
the issuing company must not at any time in period A control (whether on its own or together with any person connected with it) any company which is not a qualifying subsidiary of the issuing company, and
b
no arrangements must be in existence at any time in that period by virtue of which the issuing company could fail to meet paragraph (a) (whether during that period or otherwise).
F22
The independence element of the requirement is that—
a
the issuing company must not at any time in period A (ignoring any on-the-shelf period) be within subsection (2A), and
b
no arrangements must be in existence at any time in period A by virtue of which the issuing company could be within that subsection (whether during period A or otherwise).
2A
The issuing company is within this subsection at any time if it is under the control of any other company (or of another company and any other person connected with that other company).
2B
In subsection (2)(a) “on-the-shelf period” means a period during which the issuing company—
a
has not issued any shares other than subscriber shares, and
b
has not begun to carry on, or make preparations for carrying on, any trade or business.
3
This section is subject to section 257HB(4) (exchange of shares).
Pt. 5A inserted (17.7.2012) (with effect in accordance with Sch. 6 para. 24(1) of the amending Act) by Finance Act 2012 (c. 14), Sch. 6 para. 1