SCHEDULES
SCHEDULE 16Venture capital schemes etc
Part 3Excluded activities: receipt of royalties and licence fees
Venture capital trusts
12
1
Section 306 of ITA 2007 (qualifying holdings) is amended as follows.
2
In subsection (4), for paragraphs (a) and (b) substitute—
a
by the relevant company, or
b
by a company which was a qualifying subsidiary of the relevant company throughout a period during which it created the whole or greater part (in terms of value) of the intangible asset.
3
In subsection (6), omit the definition of “holding company”.
4
After that subsection insert—
7
If—
a
the relevant company acquired all the shares (“old shares”) in another company (“the old company”) at a time when the only shares issued in the relevant company were subscriber shares, and
b
the consideration for the old shares consisted wholly of the issue of shares in the relevant company,
references in subsection (4) to the relevant company include the old company.