Part 6Venture capital trusts
Chapter 4Qualifying holdings
The requirements
297AF3The number of employees requirement
1
If the relevant company is a single company, the full-time equivalent employee number for it must be less than F4the permitted limit when the relevant holding is issued.
2
If the relevant company is a parent company, the sum of—
a
the full-time equivalent employee number for it, and
b
the full-time equivalent employee numbers for each of its qualifying subsidiaries,
must be less than F6the permitted limit when the relevant holding is issued.
3
The full-time equivalent employee number for a company is calculated as follows—
Step 1
Find the number of full-time employees of the company.
Step 2
Add, for each employee of the company who is not a full-time employee, such fraction as is just and reasonable.
The result is the full-time equivalent employee number.
F13A
The permitted limit” means—
a
if the relevant company is a knowledge-intensive company at the time the relevant holding is issued (see section 331A), 500, and
b
in any other case, 250.
3B
The Treasury may by regulations amend subsection (3A)(a) or (b) by substituting a different number for the number for the time being specified there.
4
In this section references to an employee—
a
include a director, but