F1PART 5BTax relief for social investments

Annotations:
Amendments (Textual)
F1

Pt. 5B inserted (17.7.2014) by Finance Act 2014 (c. 26), Sch. 11 para. 1

CHAPTER 4Eligibility: conditions relating to the social enterprise

Conditions relating to the social enterprise

257MAThe amount raised from investments potentially eligible for relief

1

The amount invested must not be more than the amount given by—

where—

T is the total of any scheme investments made in the aid period,

M is the total of any de minimis aid, other than scheme investments, that is granted during the aid period—

  1. a

    to the social enterprise, or

  2. b

    to a qualifying subsidiary of the social enterprise at a time when it is such a subsidiary,

RCG is the highest rate at which capital gains tax is charged in the aid period, and

RSI is the highest SI rate in the aid period.

2

In subsection (1) “the aid period” is the 3 years—

a

ending with the day on which the investment is made, but

b

in the case of that day, including only the part of the day before the investment is made.

3

In this section “de minimis aid” means de minimis aid which fulfils the conditions laid down—

a

in Commission Regulation (EU) No. 1407/2013 (de minimis aid) as amended from time to time, or

b

in any EU instrument from time to time replacing the whole or any part of that Regulation.

4

For the purposes of subsection (1), the amount of any de minimis aid is the amount of the grant or, if the aid is not in the form of a grant, the gross grant equivalent amount within the meaning of that Regulation as amended from time to time.

5

For the purposes of this section—

a

a scheme investment is an investment in respect of which the social enterprise (at any time) provides a compliance statement, and

b

section 257KB applies for the purpose of determining when a scheme investment is made, but as if references in that section to this Part, the investment and the investor were (respectively) to this section, the scheme investment and the person making the scheme investment.

6

For the purposes of subsection (1), if—

a

the investment or any scheme investment is made, or

b

any aid is granted,

in sterling or any other currency that is not the euro, its amount is to be converted into euros at an appropriate spot rate of exchange for the date on which the investment is made or the aid is paid.