SCHEDULES
SCHEDULE 16Venture capital schemes etc
Part 1Limit on number of employees of company in which investment is made
Venture capital trusts
3
1
Part 6 of ITA 2007 is amended as follows.
2
In section 286(3) (qualifying holdings: introduction) after paragraph (j) insert—
ja
number of employees (see section 297A),
3
After section 297 insert—
297AThe 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 50 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 50 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.
4
In section 327 (certain requirements of Chapter 4 to be treated as met)—
a
in subsection (1), at the end insert “
, and
section 297A (the number of employees requirement).
”
;
b
in subsection (4)(b) for “and 297” substitute “
, 297 and 297A
”
.
5
This paragraph is deemed to have come into force on 6th April 2007.
6
The amendments made by this paragraph do not have effect in relation to—
a
a relevant holding issued before that date, or
b
a relevant holding acquired by a company (“the investing company”) F1before 6 April 2018 by means of the investment of protected money.
7
For the purposes of sub-paragraph (6)(b), “protected money” is—
a
money raised by the issue before 6th April 2007 of shares in or securities of the investing company, or
b
money derived from the investment of such money.