Finance Act 2016

29 EIS and VCTs: definition of certain periods

(1) In section 175A of ITA 2007 (EIS: the permitted maximum age requirement)—

(a) in subsection (7) for the words from “five” to the end substitute “relevant five year period.”;

(b) after that subsection insert—

“(7A) Subject to subsection (7B), the relevant five year period is the five year period which ends immediately before the beginning of the last accounts filing period.

(7B) If the last accounts filing period ends more than 12 months before the issue date, the relevant five year period is the five year period which ends 12 months before the issue date.”

(2) In section 252A of ITA 2007 (EIS: meaning of “knowledge-intensive company”)—

(a) in subsection (4), in the definition of “the relevant three preceding years”, for the words from “means” to the end substitute “means, subject to subsection (4A), the three consecutive years the last of which ends immediately before the beginning of the last accounts filing period.”;

(b) after that subsection insert—

“(4A) If the last accounts filing period ends more than 12 months before the date on which the relevant shares are issued, the relevant three preceding years are the three consecutive years the last of which ends 12 months before the date on which the relevant shares are issued.”

(3) In section 280C of ITA 2007 (VCTs: the permitted maximum age condition)—

(a) in subsection (8) for the words from “five” to the end substitute “relevant five year period.”;

(b) after that subsection insert—

“(8A) Subject to subsection (8B), the relevant five year period is the five year period which ends immediately before the beginning of the last accounts filing period.

(8B) If the last accounts filing period ends more than 12 months before the investment date, the relevant five year period is the five year period which ends 12 months before the investment date.”

(4) In section 294A of ITA 2007 (VCTs: the permitted company age requirement)—

(a) in subsection (7) for the words from “five” to the end substitute “relevant five year period.”;

(b) after that subsection insert—

“(7A) Subject to subsection (7B), the relevant five year period is the five year period which ends immediately before the beginning of the last accounts filing period.

(7B) If the last accounts filing period ends more than 12 months before the investment date, the relevant five year period is the five year period which ends 12 months before the investment date.”

(5) In section 331A of ITA 2007 (VCTs: meaning of “knowledge-intensive company”)—

(a) in subsection (5), in the definition of “the relevant three preceding years”, for the words from “means” to the end substitute “means, subject to subsection (5A), the three consecutive years the last of which ends immediately before the beginning of the last accounts filing period.”;

(b) after that subsection insert—

“(5A) If the last accounts filing period ends more than 12 months before the applicable time, the relevant three preceding years are the three consecutive years the last of which ends 12 months before the applicable time.”

(6) The amendments made by this section are to be treated as always having had effect; but this is subject to section 30.