F2PART 5BTax relief for social investments
CHAPTER 3Eligibility: conditions relating to the investor and the investment
257LDAF1The existing investments requirement
1
If at the time immediately before the investment is made the investor holds any shares in or debentures of—
a
the social enterprise, or
b
a company which at that time is a qualifying subsidiary of the social enterprise,
those shares or debentures must be risk finance investments or (in the case of shares) permitted subscriber shares.
2
A share or debenture is a “risk finance investment” for the purposes of this section if—
a
it is a share that was issued to the investor, or a debenture of which the investor is the holder in return for advancing an amount, and
b
at any time, a compliance statement under section 205, 257ED or 257PB is provided in respect of it or of shares or investments including it.
3
Subscriber shares are “permitted subscriber shares” for the purposes of this section if—
a
they were issued to the investor and have been continuously held by the investor since they were issued, or
b
they were acquired by the investor at a time when the company which issued them—
i
had issued no shares other than subscriber shares, and
ii
had not begun to carry on or make preparations for carrying on any trade or business.
4
In this section “debenture” is to be read in accordance with section 257L(6).
Pt. 5B inserted (17.7.2014) by Finance Act 2014 (c. 26), Sch. 11 para. 1