SCHEDULES

SCHEDULE 16Venture capital schemes etc

Part 4Meaning of “qualifying 90% subsidiary”

Enterprise investment scheme etc

16

1

In Chapter 3 of Part 7 of ICTA—

a

in section 289 (eligibility for relief), for subsections (9) to (13) substitute—

9

Section 190 of ITA 2007 (meaning of “qualifying 90% subsidiary”) applies for the purposes of this Chapter.

b

in section 312(1) (interpretation of Chapter), in the definition of “qualifying 90% subsidiary”, omit “to (13)”.

2

In section 190 of ITA 2007 (EIS: meaning of “qualifying 90% subsidiary”), after subsection (1) insert—

1A

For the purposes of this Part, a company (“company A”) which is a subsidiary of another company (“company B”) is a qualifying 90% subsidiary of a third company (“company C”) if—

a

company A is a qualifying 90% subsidiary of company B, and company B is a qualifying 100% subsidiary of company C, or

b

company A is a qualifying 100% subsidiary of company B, and company B is a qualifying 90% subsidiary of company C.

1B

For the purposes of subsection (1A), no account is to be taken of any control company C may have of company A.

1C

For those purposes, a company (“company X”) is a qualifying 100% subsidiary of another company (“company Y”) at any time when the conditions in subsection (1)(a) to (e) would be met if—

a

company X were the subsidiary,

b

company Y were the relevant company, and

c

in subsection (1) for “at least 90%” in each place there were substituted “ ;100% ”.