2(1)In subsection (8) of section 164A (cases where eligible shares are not a qualifying investment), after “in a qualifying company shall” there shall be inserted “, subject to subsection (8A) below,”.
(2)After that subsection there shall be inserted the following subsections—
“(8A)Where the eligible shares acquired by any person in a qualifying company are shares which he acquires by their being issued to him, his acquisition of the shares shall not be regarded as the acquisition of a qualifying investment unless the qualifying company, or a qualifying subsidiary of that company, is intending to employ the money raised by the issue of the shares wholly for the purposes of a qualifying trade carried on by it.
(8B)For the purposes of subsection (8A) above—
(a)the purposes of a trade include the purpose of preparing for the carrying on of the trade; and
(b)“qualifying subsidiary” has the same meaning as in section 164G.”