175The use of the money raised requirementU.K.
[F1(1)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.]
[F2(1A)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 [F3requirement 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 [F4subsection (1)] is—
(a)the end of the period of [F5two 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 [F5two 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.
Textual Amendments
F1S. 175(1) substituted (with effect in accordance with Sch. 8 para. 11 of the amending Act) by Finance Act 2009 (c. 10), Sch. 8 para. 7(2)
F2S. 175(1A) inserted (17.7.2012) (with effect in accordance with Sch. 7 para. 22 of the amending Act) by Finance Act 2012 (c. 14), Sch. 7 para. 8
F3Words in s. 175(2) substituted (with effect in accordance with Sch. 8 para. 11 of the amending Act) by Finance Act 2009 (c. 10), Sch. 8 para. 7(3)
F4Words in s. 175(3) substituted (with effect in accordance with Sch. 8 para. 11 of the amending Act) by Finance Act 2009 (c. 10), Sch. 8 para. 7(4)(a)
F5Words in s. 175(3) substituted (with effect in accordance with Sch. 8 para. 11 of the amending Act) by Finance Act 2009 (c. 10), Sch. 8 para. 7(4)(b)