F2PART 5BTax relief for social investments

Annotations:
Amendments (Textual)
F2

Pt. 5B inserted (17.7.2014) by Finance Act 2014 (c. 26), Sch. 11 para. 1

CHAPTER 4Eligibility: conditions relating to the social enterprise

Conditions relating to the social enterpriseF1: general

Annotations:
Amendments (Textual)
F1

Word in s. 257M cross-heading inserted (with effect in accordance with Sch. 1 para. 14(1)(2) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 1 para. 6(1)

257MLThe issue must be to raise money for chosen trade or preparing for it

1

The social enterprise must be a party to the making of the investment (so far as not in bonus shares) in order to raise money for the carrying-on, by the social enterprise or a 90% social subsidiary of the social enterprise, of—

a

a qualifying trade which on the investment date is carried on by the social enterprise or a 90% social subsidiary of the social enterprise, or

b

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

i

which on the investment date is intended to be carried on by the social enterprise or a 90% social subsidiary of the social enterprise, and

ii

which is begun to be carried by the social enterprise or such a subsidiary within 2 years after that date.

2

In this Chapter—

a

the purpose within subsection (1) for which money is raised is referred to as “the funded purpose”,

b

the qualifying trade mentioned in subsection (1)(a) or (b) is referred to as “the chosen trade”, and

c

if the funded purpose is the carrying-on of the activity mentioned in subsection (1)(b), “relevant preparation work” means preparations that form the whole or part of the activity.

3

In determining for the purposes of subsection (1)(b) when a qualifying trade is begun to be carried on by a 90% social subsidiary of the social enterprise, any carrying-on of the trade by it before it became such a subsidiary is ignored.

4

The reference in subsection (1)(b)(i) to a 90% social subsidiary of the social enterprise includes a reference to any existing or future body which will be such a subsidiary at any future time.

5

This section does not apply if the social enterprise is an accredited social impact contractor.