C1F1PART 5ASeed enterprise investment scheme

Annotations:
Amendments (Textual)
F1

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

Modifications etc. (not altering text)

CHAPTER 8Supplementary and general

Interpretation

257HGMeaning of “qualifying business activity”

1

In this Part “qualifying business activity”, in relation to the issuing company, means—

a

activity A, or

b

activity B,

if it is carried on by the company or a qualifying 90% subsidiary of the company.

This is subject to subsection (3).

2

Activity A is—

a

the carrying on of a new qualifying trade which, on the date the relevant shares are issued, the company or a qualifying 90% subsidiary of the company is carrying on, or

b

the activity of preparing to carry on (or preparing to carry on and then carrying on) a new qualifying trade—

i

which, on that date, is intended to be carried on by the company or such a subsidiary, and

ii

which is begun to be carried on by the company or such a subsidiary.

3

Activity B is the carrying on of research and development—

a

which, on the date the relevant shares are issued, the company or a qualifying 90% subsidiary of the company is carrying on, or which the company or such a subsidiary begins to carry on immediately afterwards, and

b

from which, on that date, it is intended—

i

that a new qualifying trade which the company or such a subsidiary will carry on will be derived, or

ii

that a new qualifying trade which the company or such a subsidiary is carrying on, or will carry on, will benefit.

4

For the purposes of subsection (3)(a), when research and development is begun to be carried on by a qualifying 90% subsidiary of the issuing company, any carrying on of the research and development by it before it became such a subsidiary is ignored.

5

References in subsection (2)(b)(i) or (3)(b) to a qualifying 90% subsidiary of the issuing company include references to any existing or future company which will be such a subsidiary at any future time.