Search Legislation

Finance (No. 2) Act 2015

 Help about what version

What Version

 Help about advanced features

Advanced Features

Changes over time for: Paragraph 4

 Help about opening options

Alternative versions:

Changes to legislation:

There are currently no known outstanding effects for the Finance (No. 2) Act 2015, Paragraph 4. Help about Changes to Legislation

Close

Changes to Legislation

Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.

This section has no associated Explanatory Notes

4(1)Section 280B (the investment limits condition) is amended as follows.U.K.

(2)In subsection (2) for the words from “if” to the end substitute if one or more of the following applies—

(a)the total annual investment in the relevant company exceeds the amount for the time being specified in section 292A(1);

(b)the total investment in the relevant company at the investment date exceeds the amount specified in—

(i)if the relevant company is a knowledge-intensive company (see section 331A) at the investment date, section 292AA(1)(a), and

(ii)in any other case, section 292AA(1)(b);

(c)condition A or B is met and the total investment in the relevant company at any time during the 5-year post-investment period exceeds the amount specified in—

(i)if the relevant company is a knowledge-intensive company at the investment date, section 292AB(4)(a), and

(ii)in any other case, section 292AB(4)(b).

(3)After subsection (2) insert—

(2A)In this section—

  • the investment date” means the date the current investment is made;

  • the 5-year post-investment period” means the period of 5 years beginning with the day after the investment date.

(4)For subsection (3) substitute—

(3)For the purposes of subsection (2)(a), the total annual investment in the relevant company is the sum of—

(a)the amount of the current investment,

(b)the total amount of other relevant investments made (whether or not by the investor), in the year ending with the day on which the current investment is made, in—

(i)the relevant company, or

(ii)a company that has at any time in that year been a 51% subsidiary of the relevant company,

(including investments made in such a company before it became such a subsidiary but, if it is not such a subsidiary at the end of that year, not investments made in it after it last ceased to be such a subsidiary), and

(c)the total amount of any other relevant investments (whether or not made by the investor) which are relevant imported investments.

(3A)For the purposes of subsection (2)(b), the total investment in the relevant company at the investment date is the sum of—

(a)the amount of the current investment,

(b)the total amount of other relevant investments made (whether or not by the investor), on or before the investment date, in—

(i)the relevant company, or

(ii)a company that is at the investment date, or has at any time before that date been, a 51% subsidiary of the relevant company,

(including investments made in such a company before it became such a subsidiary but, if it is not such a subsidiary at the investment date, not investments made in it after it last ceased to be such a subsidiary), and

(c)the total amount of any other relevant investments (whether or not made by the investor) which are relevant imported investments.

(3B)For the purposes of subsection (2)(c)—

(a)condition A is that—

(i)a company becomes a 51% subsidiary of the relevant company during the 5-year post-investment period,

(ii)all or part of the money raised by the current investment is employed for the purposes of an activity which consists wholly or in part of a trade carried on by that company, and

(iii)that trade (or a part of it) was carried on by that company before it became a 51% subsidiary as mentioned in sub-paragraph (i);

(b)condition B is that all or part of the money raised by the current investment is employed for the purposes of an activity which consists wholly or in part of a trade which, during the 5-year post-investment period, becomes a relevant transferred trade (see subsection (3F).

(3C)For the purposes of subsection (2)(c), the total investment in the relevant company at a time during the 5-year post-investment period (“the relevant time”) is the sum of—

(a)the amount of the current investment,

(b)the total amount of other relevant investments made, before the relevant time (whether or not by the investor), in—

(i)the relevant company, or

(ii)a company that at the relevant time is, or before that time has been, a 51% subsidiary of the relevant company,

(including investments made in such a company before it became such a subsidiary but, if it is not such a subsidiary at the relevant time, not investments made in it after it last ceased to be such a subsidiary), and

(c)the total amount of any other relevant investments (whether or not made by the investor) which are relevant imported investments.

(3D)In this section “relevant imported investment” means—

(a)a relevant investment

(i)which is made in a company at a qualifying time, and

(ii)the money raised by which is employed for the purposes of a trade carried on by another company that is, at a qualifying time, a 51% subsidiary of the relevant company (but, if at the latest possible qualifying time it has ceased to be such a subsidiary, ignoring any money so employed after it last ceased to be such a subsidiary), or

(b)a relevant investment—

(i)which is made in a company at a qualifying time, and

(ii)the money raised by which is employed for the purposes of a trade carried on by that company or another person,

where, at a qualifying time but after that investment was made, that trade (or a part of it) became a relevant transferred trade (see subsection (3F)).

(3E)In subsection (3D) “a qualifying time” means—

(a)for the purposes of subsection (3), any time in the year mentioned in that subsection,

(b)for the purposes of subsection (3A), any time on or before the investment date,

(c)for the purposes of subsection (3C), any time before the relevant time.

(3F)For the purposes of this section if—

(a)a trade is transferred—

(i)to the relevant company,

(ii)to a company that is a 51% subsidiary of the relevant company, or

(iii)to a partnership of which a company within sub-paragraph (i) or (ii) is a member,

(including where it is transferred to a company within sub-paragraph (ii), or a partnership of which such a company is a member, before the company became such a subsidiary), and

(b)the trade, or a part of it, was previously (at any time) carried on by another person,

the trade or part mentioned in paragraph (b) becomes a “ relevant transferred trade ” at the time it is transferred as mentioned in paragraph (a).

(5)In subsection (4)—

(a)omit “or” at the end of paragraph (b) and after that paragraph insert—

(ba)an investment is made in the company and (at any time) the company provides a compliance statement under section 257PB (tax relief for social investments) in respect of the investment, or, and

(b)in paragraph (c) for “Community Guidelines on Risk Capital Investments in Small and Medium-sized Enterprises” substitute “ European Commission's Guidelines on State aid to promote risk finance investment ”.

(6)In subsection (5) for “and (3)” substitute “ to (3E) ”.

(7)After subsection (5) insert—

(6)Section 257KB applies in determining for those purposes when an investment within subsection (4)(ba) is made as it applies for the purposes of Part 5B (tax relief on social investments).

(7)If only a proportion of the money raised by a relevant investment is employed for the purposes of a trade which became a relevant transferred trade as mentioned in subsection (3D), only the corresponding proportion of the relevant investment falls within that subsection.

(8)For the purposes of this section—

(a)references to a trade include a part of a trade (and references to the carrying on of a trade are to be construed accordingly), and

(b)when determining the amount of money raised by a relevant investment which has been employed for the purposes of a trade such apportionments are to be made as are just and reasonable.

(9)In this section “trade” includes—

(a)any business or profession,

(b)so far as not within paragraph (a), the carrying on of research and development activities from which it is intended a trade will be derived or will benefit, and

(c)preparing to carry on a trade.

Back to top

Options/Help

Print Options

You have chosen to open The Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act as a PDF

The Whole Act you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open the Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open Schedules only

The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Close

See additional information alongside the content

Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.

Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

Explanatory Notes

Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

Timeline of Changes

This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.

Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources