SCHEDULES
SCHEDULE 5Enterprise investment scheme
The investor
3
In section 162 (overview of Chapter 2: the investor), omit the “and” at the end of paragraph (b) and after that paragraph insert—
ba
existing shareholdings (see section 164A), and
4
After section 164 insert—
164AThe existing shareholdings requirement
1
If, at the time the relevant shares are issued, the investor holds any other shares in a company within subsection (2) (“C”), those other shares must be—
a
a risk finance investment, or
b
subscriber shares which—
i
were issued to, and have since they were issued been continuously held by, the investor, or
ii
were acquired by the investor at a time when C had not issued any shares other than subscriber shares and had not begun to carry on or make preparations for carrying on any trade or business.
2
The companies referred to in subsection (1) are—
a
the issuing company, and
b
any company which is a qualifying subsidiary of the issuing company at the time the relevant shares are issued.
3
Shares in a company are a “risk finance investment” if—
a
they are issued by the company to the investor, and
b
(at any time) the company provides a compliance statement under section 205, 257ED or 257PB in respect of the issue of shares which includes those shares.
5
In section 166 (connection with issuing company), after subsection (1) insert—
1A
But see section 252A(12) for provision which disapplies section 168.