Revenue Note for Guidance
(1) A company in which a SURE investment has been made, is not to be a qualifying company, if during the relevant period, the company engages in dealings with the investor’s immediate former employer company and such dealings are conducted on a non-arm’s length basis. A company (including its’ subsidiaries) is also not to be a qualifying company where it carried on a trade which is similar to another trade which is under common control (that is, if an individual acquires a controlling interest in the company’s trade after 5 April, 1984, and has had a controlling interest in another similar trade at any time in the period beginning 2 years before and ending 3 years after the date the shares issued or, if later, the date the company begins to trade).
(4) References to a company’s trade include references to the trade of any subsidiaries.
(1)(b) A similar trade is one which -
(2)(a) A person will have a controlling interest in a trade, when it is a trade carried on by a company it that person actually controls the company, if the company is a close company and that person or their associate is a director of the company or is the beneficial owner being able to control more than 30% of the ordinary share capital of the company, either directly or through other companies or any other indirect means. A person will also have a controlling interest when the trade is by a company if no less than 50% of the trade could be regarded as belonging to that person (as defined in section 400(2)).
(2)(b) A person will also have a controlling interest in a trade in any other case if such a person is entitled to no less than 50% of the assets used for, or the income arising from the trade.
(3) When determining if a person has such a controlling interest there shall be given to any person any rights or powers of any other person who is an associate of that person.
Relevant Date: Finance Act 2021