Finance Act 2017

Amendment of Part 16 of Principal Act (income tax relief for investment in corporate trades - employment and investment incentive and seed capital scheme)

16. (1) Section 488 of the Principal Act is amended, in the definition of “associate”, by deleting “, except that the reference in paragraph (b) of that subsection to any relative of a participator shall be excluded from such meaning”.

(2) Section 492 of the Principal Act is amended—

(a) in subsection (4)—

(i) by substituting “if the individual, or an associate of the individual,” for “if he or she”, and

(ii) by substituting “to acquire any of” for “to acquire more than 30 per cent of”,

(b) in subsection (6)(a)—

(i) by substituting “if the individual, or an associate of the individual,” for “if he or she”, and

(ii) by substituting “to receive any of” for “to receive more than 30 per cent of”,

and

(c) by substituting the following subsection for subsection (8):

“(8) For the purposes of subsections (4) and (6)(a), no account shall be taken of—

(a) shares in the company concerned which are held by the individual concerned where—

(i) that individual was entitled to relief under this Part in respect of the acquisition of those shares, and

(ii) that individual, or a person connected with that individual, does not at any time in the specified period control (within the meaning of section 432) the company concerned,

or

(b) shares subscribed for upon the formation of the company concerned where—

(i) the company has issued no shares other than those subscribed for on formation, and

(ii) the company has not yet commenced carrying on, or made preparations for the carrying on of, any trade or business.”.

(3) This section shall have effect as respects shares issued on or after 2 November 2017.