Part 5Enterprise investment scheme
Chapter 3General requirements
The requirements
175The use of the money raised requirement
F11
The requirement of this section is that all of the money raised by the issue of the relevant shares (other than any of them which are bonus shares) is, no later than the time mentioned in subsection (3), employed wholly for the purpose of the qualifying business activity for which it was raised.
F51A
Employing money on the acquisition of shares or stock in a company does not of itself amount to employing the money for the purposes of a qualifying business activity.
2
The F2requirement in subsection (1) does not fail to be met merely because an amount of money which is not significant is employed for another purpose.
3
The time referred to in F3subsection (1) is—
a
the end of the period of F4two years beginning with the issue of the shares, or
b
in the case of money raised only for the purpose of an activity to which section 179(2) applies, the end of the period of F4two years beginning with—
i
the issue of the shares, or
ii
if later, the time when the company or a qualifying 90% subsidiary of the company begins to carry on the qualifying trade.
4
In determining for the purposes of subsection (3)(b) when a qualifying trade is begun to be carried on by a qualifying 90% subsidiary of a company, any carrying on by it of the trade before it became such a subsidiary is ignored.