Part 2Income tax, corporation tax and capital gains tax_general
Venture capital schemes etc
F131Enterprise investment scheme: increase in amount of relief
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32Venture capital schemes
Schedule 11 contains provision about venture capital schemes.
33Enterprise management incentives: qualifying companies
1
Part 3 of Schedule 5 to ITEPA 2003 (enterprise management incentives: qualifying companies) is amended as follows.
2
In paragraph 8 (qualifying companies: introduction), omit the “and” at the end of the entry relating to paragraph 12, and after that entry insert— “
number of employees (see paragraph 12A), and
”
.
3
After paragraph 12 insert—
12AThe number of employees requirement
1
The number of employees requirement in the case of a single company is that the full-time equivalent employee number for it is less than 250.
2
The number of employees requirement in the case of a parent company is that 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,
is less than 250.
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 paragraph 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.
4
In paragraph 16 (excluded activities), after paragraph (i) insert—
ia
shipbuilding (see also paragraph 20A);
ib
producing coal (see also paragraph 20B);
ic
producing steel (see also paragraph 20C);
5
After paragraph 20 insert—
20AExcluded activities: shipbuilding
In paragraph 16(ia) “shipbuilding” has the same meaning as in the Framework on state aid to shipbuilding (2003/C 317/06), published in the Official Journal on 30 December 2003.
20BExcluded activities: producing coal
1
This paragraph supplements paragraph 16(ib).
2
“Coal” has the meaning given by Article 2 of Council Regulation (EC) No. 1407/2002 (state aid to coal industry).
3
The production of coal includes the extraction of it.
20CExcluded activities: producing steel
In paragraph 16(ic) “steel” means any of the steel products listed in Annex 1 to the Guidelines on national regional aid (2006/C 54/08), published in the Official Journal on 4 March 2006.
6
The amendments made by this section have effect in relation to options granted on or after the day on which this Act is passed.