Part 6Venture capital trusts

Chapter 4Qualifying holdings

The requirements

F1297AThe number of employees requirement

(1)

If the relevant company is a single company, the full-time equivalent employee number for it must be less than F2250 when the relevant holding is issued.

(2)

If the relevant company is a parent company, the sum of—

(a)

the full-time equivalent employee number for it, and

(b)

the full-time equivalent employee numbers for each of its qualifying subsidiaries,

must be less than F3250 when the relevant holding is issued.

(3)

The full-time equivalent employee number for a company is calculated as follows—

Step 1

Find the number of full-time employees of the company.

Step 2

Add, for each employee of the company who is not a full-time employee, such fraction as is just and reasonable.

The result is the full-time equivalent employee number.

(4)

In this section references to an employee—

(a)

include a director, but

(b)

do not include—

(i)

an employee on maternity or paternity leave, or

(ii)

a student on vocational training.