Part 14

Income tax liability: miscellaneous rules
Chapter A1

Remittance basis

Business investment relief

Qualifying investments
809VC
1
For the purposes of section 809VA, a person makes an investment if—
a
shares in a company are issued to the person, or
b
the person makes a loan (secured or unsecured) to a company.
2
The company is referred to as “
the target company
”.
3
The shares or the person's rights under the loan (or both) forming the subject of the investment are referred to as “
the holding
”.
4
The investment counts as a “qualifying investment” if conditions A and B are met when the investment is made.
5
Conditions A and B are defined in sections 809VD and 809VF.
6
A reference in this section to “
shares
” includes any securities.
7
If a loan agreement authorises a company to draw down amounts of a loan over a period of time—
a
entry into the agreement does not count for the purposes of this section as the making of a loan, but
b
a separate loan is to be treated as made each time an amount is drawn down under the agreement.
8
Accordingly—
a
a separate investment is treated as made each time an amount is drawn down under the agreement, and
b
the reference in subsection (3) to the person's rights under the loan applies only to so much of the person's rights as relate to the drawdown of that particular amount.
Pt. 14 Ch. A1 inserted (21.7.2008 with effect in accordance with Sch. 7 para. 81 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 1 (with Sch. 7 paras. 85-89)
No commentary item could be found for this reference key-b5c85c5c86db98b959e5afcecbd540f6Pt. 14 Ch. A1 modified by 2003 c. 1, s. 41A(8) (as inserted (with effect in accordance with Sch. 7 para. 80 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 22)
Pt. 14 Ch. A1 modified by 2003 c. 1, s. 41A(8) (as inserted (21.7.2008 with effect in accordance with Sch. 7 para. 80 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 22)
Pt. 14 Ch. A1 modified by 1988 c. 1, s. 762ZB(3) (as inserted (21.7.2008 with effect in accordance with Sch. 7 para. 98 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 94)
Pt. 14 Ch. A1 modified by 1992 c. 12, s. 87B(3) (as inserted (21.7.2008 with effect in accordance with Sch. 7 para. 115 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 108 (with Sch. 7 paras. 116-119))
Pt. 14 Ch. A1 modified (with effect in accordance with art. 1(2)(3) Sch. 1 of the amending S.I.) by The Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001), regs. 1(1), 19(3)
Ss. 809VA-809VO and cross-heading inserted (17.7.2012) (with effect in accordance with Sch. 12 para. 17 of the amending Act) by Finance Act 2012 (c. 14), Sch. 12 para. 7