Income Tax Act 2007 (c. 3)

Part 6 U.K. Venture capital trusts

Chapter 4 U.K. Qualifying holdings

The requirements U.K.

[F1 297A The number of employees requirement U.K.

(1) If the relevant company is a single company, the full-time equivalent employee number for it must be less than [F2 250] 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 [F3 250] 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 [F4 , paternity or shared parental] leave, or

(ii) a student on vocational training.]

Textual Amendments

F1 S. 297A inserted (retrospective to 6.4.2007) by Finance Act 2007 (c. 11), Sch. 16 para. 3(3)(5) (with Sch. 16 para. 3(6), (7))

F2 Word in s. 297A(1) substituted (19.7.2012) (with effect in accordance with Sch. 8 para. 20(2) of the amending Act) by Finance Act 2012 (c. 14), Sch. 8 paras. 9, 20(2); S.I. 2012/1901, art. 2(c)

F3 Word in s. 297A(2) substituted (19.7.2012) (with effect in accordance with Sch. 8 para. 20(2) of the amending Act) by Finance Act 2012 (c. 14), Sch. 8 paras. 9, 20(2); S.I. 2012/1901, art. 2(c)

F4 Words in s. 297A(4)(b)(i) substituted (1.12.2014) by Children and Families Act 2014 (c. 6), s. 139(6), Sch. 7 para. 72; S.I. 2014/1640, art. 5(2)(cc)