Part 6Venture capital trusts
Chapter 4Qualifying holdings
The requirements
293The use of the money raised requirement
F11
The requirement of this section is that—
a
less than two years has passed since the trading time, or
b
at least two years has passed since the trading time and all of the money raised by the issue of the relevant holding has been employed wholly for the purposes of a relevant qualifying activity.
F22
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F24
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5
In subsection (1) “the trading time” means whichever is applicable of the following—
a
in a case where the requirement of section 291 was met in relation to the time when the relevant holding was issued and the relevant qualifying activity falls within subsection (2) of that section, the time when the relevant holding was issued, and
b
in a case where that requirement was met in relation to that time and the relevant qualifying activity falls within subsection (3) of that section, the time when the condition in subsection (4)(a) of that section was met by a qualifying company beginning to carry on the intended trade.
6
For the purposes of this section money is not to be treated as employed otherwise than wholly for the purposes of a relevant qualifying activity if the only amount employed for other purposes is an amount which is not a significant amount.
7
Nothing in section 286(5) requires any money whose use is ignored by virtue of subsection (6) to be treated as raised by a different holding.
8
In this section—
“qualifying activity” and “qualifying company” have the same meaning as in section 291, and
a qualifying activity is a “relevant qualifying activity” if—
- a
it was also a qualifying activity at the time when the relevant holding was issued, or
- b
it is a qualifying trade and preparing to carry it on was a qualifying activity at that time.
- a