1U.K.Schedule 5B to TCGA 1992 (enterprise investment scheme: re-investment) is amended as follows.
2(1)Paragraph 1(2) (application of Schedule) is amended as follows.U.K.
(2)For paragraphs (g) and (h) substitute “and
(g)all of the money raised by the issue of the shares (other than any of them which are bonus shares) is, no later than the time mentioned in section 175(3) of ITA 2007, employed wholly for the purpose of that activity,”.
(3)In the words following the paragraphs, for “conditions in paragraphs (g) and (h) above do” substitute “ condition in paragraph (g) above does ”.
3(1)Paragraph 1A (failure of conditions of application) is amended as follows.U.K.
(2)In sub-paragraph (4)—
(a)omit “or (h)”, and
(b)for “sub-paragraph (4A) below” substitute “ section 175(3) of ITA 2007 ”.
(3)Omit sub-paragraph (4A).
4(1)Paragraph 9 (other reconstructions and amalgamations) is amended as follows.U.K.
(2)For sub-paragraph (1) substitute—
“(1)This paragraph applies if section 135 or 136 (company reconstructions) applies in relation to shares to which deferral relief, but not relief under Part 5 of ITA 2007 (or Chapter 3 of Part 7 of the Taxes Act), is attributable.
(1A)Paragraphs 3 and 4 of this Schedule have effect as if section 135 or 136 did not apply in relation to the shares.”
(3)In sub-paragraph (2), for “Sub-paragraph (1) above shall not have effect to disapply section 135 or 136 where” substitute “ Sub-paragraph (1A) does not apply if ”.
(4)For sub-paragraph (3) substitute—
“(3)Sub-paragraph (1A) does not apply if paragraph 8 applies in relation to the shares.”
5U.K.In paragraph 16 (information), omit sub-paragraph (4A).
6(1)Section 158 of ITA 2007 (form and amount of EIS relief) is amended as follows.U.K.
(2)In subsection (4), omit—
(a)“Subject to subsection (5),”, and
(b)“before 6 October”.
(3)Omit subsection (5).
7(1)Section 175 of that Act (use of money raised requirement) is amended as follows.U.K.
(2)For subsection (1) substitute—
“(1)The requirement of this section is that all of the money raised by the issue of the relevant shares (other than any of them which are bonus shares) is, no later than the time mentioned in subsection (3), employed wholly for the purpose of the qualifying business activity for which it was raised.”
(3)In subsection (2), for “requirements in subsection (1)(a) and (b) do” substitute “ requirement in subsection (1) does ”.
(4)In subsection (3)—
(a)for “subsection (1)(a)” substitute “ subsection (1) ”, and
(b)for “12 months” (in both places) substitute “ two years ”.